Expect to see 1.7 million barrels a day growth in crude in 2023, says Jeff Brown of FGE

2022 has been a volatile year for the energy space. Crude prices have swung 10-12 percent on a weekly basis through the year due to the Russia-Ukraine war. Natural gas prices have also risen over 28 percent with major parts of Europe looking at a harsh winter, the gas prices are expected to stay on the higher side going forward.

The first half of 2023 also looks gloomy for the crude market as Russia plans to cut output by 5 to 7 percent as a response to the price cap by G7 nations.

Large US refineries have shut down in Texas and North Dakota due to cold climates, this can also have adverse effect on the supply side.

But will crude prices hit $110 a barrel next year, and will overall demand and supply be majorly impacted in 2023? To discuss this CNBC-TV18 spoke to Jeff Brown, President at FGE.

On crude demand Brown said, “We still see pretty good demand growth next year, about 1.7 million barrels a day.”

He added, “The other thing to watch is Russia. So far, Russia has been sort of a non-event in terms of it keeps getting oil into the market. We expect it to be similar next year. But there's always the potential for disruption so those are the key things we are watching.”

Also watch, Vikram Dhawan, Hd- Commodities & Fund Manager of Nippon India Mutual Fund discuss gold in 2022, key triggers for gold prices and outlook for gold in 2023.