Oil prices expected to average below $100 next year - poll

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Oil prices expected to average below $100 next year - poll

<p style="" class="text-align-justify">That figure is lower than the $87.80 consensus seen last month, despite the news that China is staying firmly on course to re-opening its economy. Meanwhile, Brent crude is seen averaging $89.37 next year and that forecast is down from the $93.65 consensus from the November survey.</p><p style="" class="text-align-justify">According to the poll, the impact of sanctions on n oil is expected to be minimal with Goldman Sachs noting that "we do not expect an impact from the price cap, which was designed to give bargaining power to third-country buyers".</p><p style="" class="text-align-justify">It seems like for now, the softening global outlook is weighing on sentiment as the market seems to be fearing a hit to demand amid a recession in most major economies. But China will be a key factor to be mindful of in the first half of the year I would say, before we start to see how market players will take to the recession fears and potential reversal of the central bank tightening cycle.</p><p style="" class="text-align-justify">As for the oil market itself, conditions remain tight and the lack of investment are still two key drivers to be wary of in the longer-term outlook.</p>

                This article was written by Justin Low at www.forexlive.com.

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