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The
bank cut its average forecasts for the Brent and West Texas
Intermediate (WTI) benchmarks by $6 per barrel (/b) and $7/b,
respectively, to $92/b and $87/b.
It also forecast Brent would average $97/b next year and WTI
$92/b.
The market could flip into a deficit of 500,000 barrels per day
(bpd) in the second half of this year as China's reopening from
pandemic restrictions "matures" and as supply growth from
outside the OPEC+ producer group slows, the analysts added.
China's oil demand could increase by 500,000 to 600,000 bpd in
2023, Haitham Al Ghais, the secretary general of the
Organization of the Petroleum Exporting Countries (OPEC), said
on Tuesday at the CERAWEEK conference, with global oil demand
seen rising by 2.3 million bpd in 2023.
Barclays, meanwhile, revised its 2023 demand estimate 150,000
bpd higher due in part to a somewhat improved growth outlook for
the United States and Europe. It sees a 900,000 bpd increase in
Chinese demand this year.
The Group of Seven economies, the European Union and Australia
agreed a price cap on Russian oil late last year, aiming to
deprive Moscow of funds for its war in Ukraine.
Barclays said the risk of a deceleration in broader economic
activity remained due to flat industrial activity and continued
tightening of monetary conditions.
Brent crude futures were up 0.1% to $83.40 per barrel at 1103
GMT, while U.S WTI crude futures were down 0.1% to $77.49 a
barrel.
(Reporting by Rahul Paswan in Bengaluru; Editing by Mark Potter)
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