The most recent flare-up of concerns over supplies from Russia has once again put prices on a trajectory towards $100/barrel.. TD Securities economists expect Brent oil to reach this level before moving lower towards the mid-$80 zone.
Brent will move towards the mid-$80 zone in the latter part of 2022
“If there is an invasion and severe sanctions are imposed on Russia, further substantial price increases are likelyas supplies are tight and demand will accelerate as COVID-19 restrictions are lifted and driving season approaches.”
“If there is confirmed evidence that Russia is withdrawing troops from the border, we could see prices approaching the mid-$80s.“.
“Crude oil may reach $100/barrel if the likelihood of harsh sanctions against Russia increaseswhich would cause a reduction in their production estimates. After that, a drop is expected that would take Brent to the mid-$80 zone by the end of 2022since both supply and demand respond to the impact of prices”.
Source: Fx Street
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