Brent Oil to average $125 in Q2 before diving to $100 in Q4 – Danske Bank

The war in Ukraine changes everything for the oil market. Strategists at Danske Bank expect Brent Oil to hover around the $125 level in the second quarter and falling to $100 by the end of the year.

It will take a period of high prices to lure in new supply

“The war in Ukraine and subsequent sanctions (official and unofficial) has tightened the oil market. In our view, it will take time before the market rebalance and it will take a period of high prices to lure in new supply.”

“We now forecast Brent to average $125/bbl in Q2, fall to $100/bbl in Q4 and further to $95/bbl in 2023.”