Investment bank Citigroup is predicting oil prices to tumble by the end of the year if the world slips into a recession.
Crude oil prices could end up at $65 per barrel by the end of 2022, analysts from the bank said in a July 5 note, Bloomberg reported. By 2023, prices could collapse further to $45. The prediction is contingent on a decline in oil investment and the absence of any market intervention by OPEC+.
“For oil, the historical evidence suggests that oil demand goes negative only in the worst global recessions,” the bank said. “But oil prices fall in all recessions to roughly the marginal cost.”…