According to the forecast of the Swiss bank UBS Group AG, this year, oil prices will go up due to the continued underinvestment of the oil industry and the significant growth of the Chinese economy.
The bank's analysts expect Brent to cost $110 a barrel by the end of the year, and WTI to be $107 a barrel.
Let us remind you that currently oil prices are declining, Brent is currently trading cheaper than $79 per barrel, while WTI is cheaper than $74 per barrel.
"We expect oil demand to rise by 1.6 million barrels per day, with aggregate demand exceeding record 103 million barrels per day in the second half of 2023", Swiss financiers warned.
As for Russia, the same forecast says that its total oil production will fall below 9 million barrels per day, and this will be one of the risks of a sharp rise in oil prices in 2023.
