The bank “Barclays” Wednesday reduced its forecast for the price of Brent crude in 2024 by four dollars to 93 dollars per barrel, citing the strength of crude supplies in the United States, the rise in Venezuelan production after the easing of US sanctions.
The British lender said in a note: “the recent decline in prices is primarily driven by the return of concerns about demand and not the fading of the geopolitical risk premium,” Reuters reported.
On the contrary, “Barclays” strengthened its demand forecasts, raising its estimates of Chinese demand for crude by 200 thousand and 300 thousand barrels per day during 2023 and 2024, respectively.
Barclays stressed that oil prices should remain relatively high until at least the end of this decade, noting that the supply side seems to be more constrained, and set the fair value of Brent crude during the period between 2025 and 2030 at 80 dollars per barrel.
