UBS increases its Brent forecast to $90 a barrel in December-March

UBS increased its Brent forecast to $90/bbl in December-March, with the oil market to remain tight and Opec+ likely to add supplies “only gradually,” according to a note from the bank. Brent prices may level off to $85/bbl through rest of 2022, said UBS strategists Giovanni Staunovo and Wayne Gordon. 

Inventories in OECD countries are at the lowest level since 2015 and demand for oil is set to hit 100m b/d in December. 

Investors with a high risk tolerance can still add exposure to longer-dated Brent oil contracts. 

Previously expected OPEC+ to agree to more than 400k b/d hike in production from December due to high oil prices. Comments from Saudi, Russia, and UAE officials suggest group has no such plans during November 4 meeting.