WTI crude may average $86.6/barrel and Brent $91.9 in 2023, Visual Capitalist said in its ‘Guide to 2023’, part of the global 2023 forecast series- VC+.
Energy was the S&P 500’s top performing sector two years in a row, and many experts feel that more growth is on the horizon.
The global system that supplies energy is breathtakingly complex, with a lot of unpredictable factors at play. Of all factors, conflict can create the most volatility, and 2023 has a number of geopolitical risks that could impact energy supplies.
First, Europe will continue to diversify its energy imports away from Russia. Recently, liquefied natural gas from the US has helped fill gaps.
Iran could be a flashpoint in the Middle East this year, Visual Capitalist noted.
A brewing conflict in the region could cause instability, which will have knock-on effects on the energy industry — particularly in the event of attacks on oil and gas infrastructure.
A few other factors to consider this year according to Visual Capitalist are: The US Energy Department aims to replenish its Strategic Petroleum Reserve, easing of US sanctions on Venezuela could lay the ground work for increased oil production, in post-zero-Covid China, economic activity will increase, pushing up demand, and in the UK, the energy price guarantee will rise in April, meaning higher energy bills for households.