off-the-wire

FACTBOX-HSBC cuts 2023 Brent forecast on economic risks

Kitco Media
By Reuters
Published:
Updated:
Reuters
June 30 (Reuters) - HSBC cut its 2023 average Brent oil price forecast on Friday, reasoning that economic concerns have been the dominant factor weighing on the market of late rather than supply-demand fundamentals. HSBC lowered its average Brent price forecast for 2023 to $80 per barrel from $88 earlier and for West Texas Intermediate (WTI) to $76 a barrel. The bank said crude prices have stayed below $80 despite fresh production cuts from Saudi Arabia and OPEC+ and this price trajectory should continue for part of the summer, although a deficit of about 2.3 million barrels per day for the second half of 2023 could spur some upward momentum. Brent futures were trading around $75 by 0912 GMT on Friday, while West Texas Intermediate (WTI) U.S. crude was around $71. The following is a list of the latest brokerage forecasts for 2023 average prices per barrel for Brent and WTI (in $ per barrel): Brokerage/Agency Brent WTI Date Revised 2023 2024 2023 2024


HSBC June 30 80.00 75.00 73.00


76.20




Deutsche June 28 81.30 82.50 77.50


76.20




JP Morgan 81.00 83.00 76.00 79.00 June 14 Citi Research* 81.00 73.00 76.00 69.00 June 5 UBS* 95.00 -- 90.00 -- May 17 BofA Global Research 80.00 90.00 75.00 May 8 Goldman Sachs 88.00 99.00 82.00 94.00 April 4 Morgan Stanley -- 85.00 -- -- April 3 Barclays 97.00 -- -- -- April 3 Commerzbank* 90.00 -- March 21 Fitch Solutions 100.00 98.00 Oct. 6 ANZ 104.50 103.40 NA Standard Chartered 91.00 88.00 NA ABN Amro 76.00 74.00 NA
* indicates end-of-period forecast # current as of given date, may not indicate date of revision


For a table of crude price forecasts as per Reuters latest monthly poll, see (Reporting by Bengaluru Commodities desk;)

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