WTI projected at $81 in H2 and $80 in 2024 – BMO

West Texas Intermediate (WTI) crossed the $80/bbl mark after it sank below $70 for most of June. Economists at the Bank of Montreal stick to their WTI forecast.

The balance of risks has tilted more to the upside

One should expect the drumbeat of $90 or $100 predictions to pick up in the coming weeks. Reaching these levels, at least temporarily, is not a tall order given Crude Oil is the most intensely speculated commodity, which helps explain its high degree of price volatility.

The price of crude oil has some solid wind in its sails, but it still has many challenges ahead. As a result, we remain comfortable with our current WTI projections of $78 for the whole of 2023 (or $81 in H2) and $80 in 2024 but acknowledge that the balance of risks has tilted more to the upside.