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BMO Economists Warn of Continued Instability in Oil Market for 2023 |
Following a drop in West Texas Intermediate (WTI) crude prices from $80 at the beginning of the month to around $65-70 per barrel, the Bank of Montreal's economists have expressed concerns that prospects for a recovery in prices remain uncertain.
The bank has revised its 2023 projection for WTI prices from $90 to $85 per barrel, and warns that the oil market is expected to remain on unstable ground for the remainder of the year.
BMO economists have stated that while it may not be time to hit the panic button yet, the recent events that have transpired, including the banking fallout, have made it clear that risks for the oil market remain heavily weighted to the downside.
Investors and industry experts alike are keeping a close eye on the market, as the future of the oil industry remains uncertain.
