Barclays on Tuesday lowered its Brent price forecasts by $8 per barrel to $103 per barrel for 2022 and 2023, citing a large, expected surplus over the near term primarily due to Russian supplies.
“The recent move lower in prices is primarily a timing issue, as resilient Russian supplies before the EU sanctions kick in later this year have coincided with elevated concerns of a broader slowdown,” it said in a note.
However, Russian oil output is expected to decline 1.5 million barrels per day (bpd) compared with the pre-war level once the European Union sanctions on imports and insurance activities kick in, Barclays said.
Oil prices fell on Tuesday as bleak economic data from top crude buyer China renewed fears of a global recession, with Brent trading around $94 a barrel and WTI futures slightly below $89.