Fitch Ratings has lowered its long-term price assumption for West Texas Intermediate to $50 from $52 a barrel expected earlier, to reflect fragile market balances, inventory overhangs, lower breakevens, and the energy transition going forward. According to the rating agency’s latest oil and gas price assumptions update on Tuesday, Brent Crude prices are expected at $53 a barrel in the long term in the base-case scenario, compared to a previous forecast of $55 per barrel. Fitch also reduced its oil price outlook for 2022, expecting Brent Crude prices at $50 per barrel, down from an earlier projection of $53 a barrel, on the back of higher inventories that will have resulted from the pandemic, as well as the fragile supply-demand dynamics and declining breakeven oil prices in many areas. WTI Crude prices are now expected to average $47 a barrel in 2022, down from $50 expected earlier. “The price […]