Brent Crude Oil to end 2023 at $80 – Deutsche Bank

FXStreet Insights Team FXStreet

Crude had its best week since October. Brent Oil rose $1.89 to $86.39. Strategists at Deutsche Bank expect the black gold to end the year around the $80 level.

Signs of excess supply for H1 before demand recovers in H2 2023

“We see Brent at $75/bbl for H1 before balances improve in H2 to $80/bbl.”

“We see recession slowing demand growth, but as China’s exit from zero-Covid occurred earlier than expected, there is less scope for ‘slingshot’ rebound in Q2. By H2, global demand should rise to 1 mmb/d above H2-2019 level.”

“We see excess supply sustaining downside pressure for H1, creating tension with OPEC’s policy bias, before demand recovers in H2 2023.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.