Dec 30 (Reuters) – Oil prices are set for small gains in 2023 as a darkening global economic backdrop and COVID-19 flare-ups in China threaten demand growth and offset the impact of supply shortfalls caused by sanctions on Russia, a Reuters poll showed on Friday.
A survey of 30 economists and analysts forecast Brent crude would average $89.37 a barrel in 2023, about 4.6% lower than the $93.65 consensus in a November survey. The global benchmark has averaged $99 per barrel in 2022.
U.S. crude is projected to average $84.84 per barrel in 2023, versus the previous month’s $87.80 consensus.
“We expect the world to slip into recession in early 2023 as the effects of high inflation and rising interest rates are felt,” said Bradley Saunders, assistant economist at Capital Economics.
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