Oil rally to stall as recession risks counter tight supplies, says poll
A rally in oil prices could stall as recession fears and COVID flare-ups in China slow demand and counter supply risks from sanctions on Russia and OPEC+ output constraints, a Reuters poll showed on Friday.
A survey of 35 economists and analysts forecast Brent crude would average $105.75 a barrel in 2022, down from a forecast of $106.82 in June marking the first downward revision to the monthly poll since April.
The global benchmark has averaged about $105 a barrel this year. [O/R]
“The focus is slightly shifting away from supply disruptions towards crude demand destruction due to global recessionary fears,” said Edward Moya, senior analyst with OANDA.
