Barclays analysts slash Brent crude oil price forecast, but say demand concerns overblown

Posting this ICYMI, analysts at Barclays lowered their oil price forecast for Brent crude futures next year by $4/b to $93/bbl.

• “We lower our 2024 Brent forecast by $4/bbl but maintain our above-curve and consensus view on prices.”
• said that the 2024 forecast is still $14/bbl ahead of the Brent forward curve
• added that the recent selloff in oil may be overdone

Barclays citing:

• weakening demand outlook in the US and China clashing with concerns of an escalation and potential supply disruption in the Middle East
• concerns over the strength of the global economy were compounded last week by data showing a surprise spike in US oil stocks, and economic weakness in China
• “Demand concerns have returned recently but based on our assessment of the aggregate data, these might be misplaced”

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Oil futures trade will open for the week at the top of the hour.

This article was written by Eamonn Sheridan at http://www.forexlive.com.