Reuters: Analysts do not rule out even $ 100 for oil

Oil prices will continue to record gains in 2022 after the rally of 2021 by 50%, as analysts estimate, even exceeding the level of $ 100 a barrel due to production capacity shortages and limited investment in the sector, transmits Reuters.

Although the coronavirus’s micron mutation has driven cases far above the 2021 high, analysts expect oil prices to be supported by the reluctance of many governments to restore the severe constraints that pushed the global economy into the 2020 global pandemic. .

Brent futures are up 42 cents, or 0.5%, at $ 84.14 a barrel. WTI futures, meanwhile, added 60 cents, or 0.7%, to $ 81.82 a barrel.

“If China does not experience a rapid slowdown and with the assumption that the micron will gradually decline, but also with OPEC + ‘s ability to increase production is clearly limited, I see no reason why Brent should not move to $ 100 a year. first quarter, possibly earlier, “said Jeffrey Halley, OANDA senior market analyst.

OPEC + has decided to gradually return production to pre-cut levels to tackle demand in the wake of the coronavirus crisis in 2020. However, many OPEC + countries do not have the capacity to increase further. their production, while others are wary of concerns about a new pandemic outbreak.

“We do not want to see $ 100 a barrel. People are not ready for that,” Oman’s oil minister Al Rumhi told Bloomberg.

Morgan Stanley, however, estimated that Brent will reach $ 90 a barrel in the third quarter of 2022.

Standard Chartered, meanwhile, raised its forecast for Brent by $ 8 to $ 75 a barrel in 2022 and by $ 17 to $ 77 in 2023.

JP Morgan analysts also expect prices to reach $ 90 by the end of the year.