Brent oil price forecast 2020-2023

Brent crude oil is projected to have an average annual price of 101.48 U.S. dollars per barrel in 2022, according to a forecast from December 2022. Crude oil prices have been rising dramatically following the Russia-Ukraine war as traders foresaw significant supply shortages due to sanctions placed on Russia. By September, recession fears had resulted in the forecast being adjusted down slightly.

All about Brent

Also known as Brent Blend, London Brent, and Brent petroleum, Brent Crude is a crude oil benchmark named after the exploration site in the Brent oilfield in the North Sea. It is a sweet light crude oil but slightly heavier than West Texas Intermediate. In this context, sweet refers to a low sulfur content, and light refers to a relatively low density, when compared to other crude oil benchmarks.

Price development in the 2010s

Oil prices are volatile, impacted by consumer demand and discoveries of new oilfields, new extraction methods such as fracking, and production caps routinely placed by OPEC on its member states. The price for Brent crude oil stood at an average of roughly 71 U.S. dollars per barrel in 2021, up from just 42 U.S. dollars in 2020, when the coronavirus pandemic resulted in a sudden demand drop. Annual average prices were the highest on record in 2013, at 108.56 U.S. dollars per barrel.