From Mansfield Energy whom we last visited on Halloween during the spooky diesel shortage scare. They were a voice of reason.
Major Supplier, Mansfield Energy, On The Current State Of The Diesel Market On The U.S. East Coast
They are indeed a major supplier.
March 2, 2023:
While no one knows the future of fuel prices, there is power in numbers. That’s why it’s helpful to aggregate forecasts together to gain a better understanding of what might happen. Today, we’ll explore bank forecasts from eleven different investing institutions, ranging from Goldman Sachs and Citi to Fitch Solutions and ANZ, to see what 2023 prices may hold.
Looking ahead, the average forecast for this year is $90.54 for crude oil, roughly $15/bbl ($.30 per gallon) above current market levels. The forecast summary, published by Refinitiv, also shows a minimum and maximum forecast of $74/bbl and $103/bbl, respectively. While the average forecast is above current levels, it could drop in the future as banks adjust their forecasts, as Bank of America did recently.
It is usual for banks and financial institutions to adjust their oil price forecasts based on changing market conditions and geopolitical events. The Bank of America Corp (BofA) has lowered its 2023 Brent crude oil price forecast from $100 to $88 per barrel. This downward revision is based on the bank’s views on both expected Chinese demand and the impact of a Western ban on Russian oil. It is important to mention that, despite the sanction, Russia’s oil exports had grown to 5.1 million barrels per day (bpd) at the end of January from 4 million bpd at the end of August 2022.
Overall, the decision to lower the oil price forecast highlights the complex and ever-changing nature of the oil market. As geopolitical events and economic conditions shift, oil prices are likely to respond accordingly, and banks and financial institutions will adjust their predictions in response.
JP Morgan has predicted that Brent prices are unlikely to reach $100 per barrel in 2023. The bank believes that Russian crude oil production will recover before the end of the first quarter and that high prices would deter the U.S. from repurchasing crude to refill the Strategic Petroleum Reserve (SPR), which will probably force prices to stay below $100 per barrel....
....MUCH MORE
They also do a Friday weekly wrap-up, again March 3:
Week in Review – March 3, 2023
