Analysts predict a free fall in oil prices in view of the expected significant slowdown in the economic growth of the world economy.
Ominous are the forecasts of Citigroup analysts, who do not exclude the possibility of a new global economic recession before the end of 2023.
According to financiers, the economy in some countries of the world is already showing clear signs of recession, which threatens with unpredictable consequences. Citigroup predicts global economic downturn by 2023 (up to 50%)which makes it highly likely that the price of oil will free fall from $110 a barrel (currently) to $65 by the end of 2022 and to $45 in 2023.
Falling prices will lead to a decrease in the cost of automotive fuel. The price of gasoline is expected to reach 1.5 euros per liter or even lower if (and when) global economic recession scenarios are confirmed.
Even if the global economy does not experience another significant slowdown, Citigroup analysts predict that oil price, sooner or later, will drop to $85 per barrel.
Recently, there has been a slight drop in prices for petroleum products and liquid fuels at gas stations, but the cost of gasoline is still extremely high.
The forecast for a decline in oil prices during 2022 is based on the fact that, despite the ongoing hostilities in Ukraine and the embargo on Russian black gold, reserves (and supplies) are assessed by experts as stable, which will gradually lead to the normalization of the market, the newspaper writes. carandmotor.gr.