The American group Citigroup warns that crude oil will collapse to $65 a barrel by the end of 2022, and drop to $45 by the end of 2023, if there is a stagnation impeding demand.
According to Arab Net, analysts, including Francesco Martuccia and Ed Morse, said in a report that these expectations are based on the absence of any intervention by OPEC Plus producers, and the decline in oil investments.
Brent crude was last traded near $113 a barrel, according to Bloomberg data.
Oil has surged this year after the invasion of Ukraine, and banks are now trying to chart their course to 2023 as central banks raise interest rates and recession risks increase.
Citigroup's forecasts compared the current energy market to the crises of the 1970s.
At present, the group's economists do not expect the United States to sink into a recession.
“For oil, historical evidence suggests that oil demand turns negative only in the worst of a global recession, but in all recessions oil prices fall to nearly marginal cost,” Citi analysts said in a note.
