Outlook for USOIL– 2023 Outlook
The seasonal demand and supply, along with world events, affect the price of crude oil. From the global pandemic that has been going on for more than two years to the war that started in early 2022, two events that were never thought of, fluctuations have caused oil prices to fall from the oversold point to the overbought point.
In April 2020, the extreme low price was $6.64/barrel. In Q1 2022, the highest price was $125/barrel. The USOIL price has declined to the January 2022 level since then. Despite attempts to bounce back in the months of April–May, since July, the bears have ruled the market until the end of 2022.
Numerous effects of the two major events have led to various policies and actions from advanced economies that have had a significant impact on the world’s oil market and have created both hope and negative sentiment for 2023. High inflation and supply disruptions due to war and Russian economic and oil sanctions as well as high prices prompted the central bank to aggressively raise interest rates to increase fears of a recession. When there is less money in the economy , oil prices tend to drop.