KUALA LUMPUR (Aug 30): Crude oil prices would start to correct gradually in 2023 as supply normalises, according to Petroliam Nasional Bhd (Petronas) president and group chief executive officer Datuk Tengku Muhammad Taufik.
At a press briefing on Petronas’ 1HFY22 results on Tuesday (Aug 30), he said the current elevated energy prices are due to years of underinvestment in the oil and gas sector.
“With OPEC and its members (OPEC+) gradually increasing their production, we expect some kind of correction in oil prices in 2023.
“The eventual cyclicality of this industry will take effect. There will be a correction, which is always inherent, I think. The imbalance between demand and supply will correct itself.
“But, it is unlikely to go back to the pre-pandemic level,” said Muhammad Taufik, who estimated oil prices to range between US$90 and US$95 per barrel in the second half of 2022.