Fitch Ratings raises its oil & gas price assumptions

Fitch Ratings has again raised its forecast for Brent and WTI oil prices, as well as gas prices in Europe for 2022 and 2023, Report informs referring to the agency’s website.

“Fitch Ratings has increased its oil and gas price assumptions due to trade flows disruptions and redirection and higher post-pandemic demand,” reads the report.

The agency expects the average annual price of Brent this year at $105 instead of $100 per barrel, next year - $85 against $80. The forecast for 2024 has been increased to $65 from $60, and for 2025 it remains at $53 per barrel.

The average annual cost of WTI this year is now projected at $100 instead of $95 per barrel, in 2023 - $81 against $76, in 2024 - $62 instead of $57. The forecast for 2025 is kept at $50 per barrel.

Gas prices in Europe, according to Fitch’s expectations, will be $25 per 1,000 cubic feet in 2022 instead of $20 in the previous forecast, next year - $15 instead of $10. The forecast for 2024 has been raised to $10 from $7, and for 2025 to $7 from $5.