WTI crude futures held its recent advance to around $111 per barrel on Tuesday, as persistent supply-side issues outweighed concerns a recession will eventually hurt energy demand. In the latest developments, Norwegian offshore workers began a strike on Tuesday that is expected to cut around 130,000 barrels or 6.5% of the country’s daily oil production, according to Reuters. Oil also remains nearly 50% up this year as the global economic recovery coincided with disrupted Russian supply due to the war in Ukraine. Adding to supply concerns, OPEC+ has been struggling to pump more crude due to underinvestment, capacity limits and political unrest in some member states. Meanwhile, oil came under pressure last month as signs of an impending US recession, driven by the Federal Reserve's aggressive fight against inflation, prompted a wave of selling in commodities. Investors are also tracking China’s slow emergence from virus restrictions amid recurring outbreaks throughout the country.
Historically, Crude oil reached an all time high of 147.27 in July of 2008. Crude oil - data, forecasts, historical chart - was last updated on July of 2022.
Crude oil is expected to trade at 112.51 USD/BBL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 125.68 in 12 months time.