According to analysts, in 2023, Russia will continue to supply oil to India and China. The decision was taken just after the European Union introduced the price cap on Russian oil. Notably, most factors that have been shaping oil prices this year are likely to remain in force in the upcoming year.
Against the backdrop, Brent crude will hardly exceed $110 per barrel. What is more, the price of the Brent benchmark may drop below $75 per barrel.
According to preliminary estimates, in 2023, oil prices will be affected by geopolitical factors, a recession level in developed countries, demand for energy in China, and the introduction of price caps on hydrocarbons. If demand remains the same, oil prices are unlikely to change.
After the European Union imposed a price cap on Russian oil, the country started to supply its oil to the Chinese and Indian markets. Analysts think that Russia needs Asian partners and accepts their conditions, including a discount on oil. However, lower oil production in Russia may boost global oil prices.
