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Oil prices may not have as wide a swing in 2023 as they had in 2022, but the market will still remain volatile and risks price shocks as much from economic developments as geopolitical ones, energy analysts say. One of the biggest wild cards for markets in general is the economic reopening of China as it relaxes its “zero-Covid” restrictions. That could drive crude prices higher if demand increases significantly. The continued ripple effects of Russia’s war in Ukraine could also continue to put upward pressure on prices if it constrains global supply. But counterbalancing that is the threat of recession in the U.S., which could further reduce already weakened fuel demand. China could also become a drag on prices if its reopening fails, or if it backtracks as record high Covid cases take hold. “I think we’re going to have a range again. The high water mark will come early in the first quarter,” said John Kilduff, partner with Again Capital. “I’m expecting we get over $90 [a barrel], but there’s economic concerns. … There’s a hopeful analysis that we’ll be spared the high prices of this year. It’s not unrealistic, but from a consumer perspective, we’ve got […]
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