Audio By Carbonatix
Ratings agency, Fitch, has revised its end-year forecast for the price of Brent Crude to $100 per barrel, from the previous $105.
It had earlier reviewed its projection to $105, but recent global developments where economic growth has slowdown caused this revision.
“Our reduced Brent and WTI assumptions for 2022 reflect year-to-date oil pricing driven by concerns about economic growth. Oil spot prices have recently declined, especially compared to the levels in March [2022] and June [2022], due to fairly resilient Russian export volumes and a potential revival of the Iran nuclear deal, which could add one million barrels per day (bpd) of oil supply to the market”.
“US production is increasing, although it faces oilfield services bottlenecks and constrained capital expenditure budgets”, it said.
However, the ratings agency noted that OPEC+ remains cautious in its approach to quota increases and has recently cancelled a production addition of 100,000bpd to its October 2022 target.
The $100 is still a good one for oil-producing countries such as Ghana, but bad news for petroleum consumers.
For countries that do not provide fuel subsidies, consumers would have to pay more petroleum products.
Meanwhile, Brent crude is still hovering around $90 per barrel.
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