What May Happen With Oil Prices in 2022?
During the lockdown in 2020, when air travel, cruises and daily commuting to work stopped, oil demand collapsed. The ensuing increase in the supply of crude oil, as well as the lack of storage space, led to the fact that in April last year, oil futures decreased.
Recently, the opposite problem has emerged: oil prices not only rose, but also broke through the levels that existed before the pandemic. When prices plummeted in 2020, producers had no choice but to cut production.
But where will oil and gas prices head in 2022? Barclays predicts the value of WTI will rise from the current level of USD 69.92 to USD 77 in 2022. The bank says the Biden administration's recent release of oil from the Strategic Oil Reserve is not the most sustainable way to lower prices. The drop that has been seen in the past few weeks will be temporary. If the impact of the new waves of Covid-19 is minimized, prices could still rise above forecast, allowing demand to rise more than expected. In other words, ending the pandemic next year will put even more pressure on prices in one way or another.
Goldman Sachs also agrees with this assessment. Oil analysts at the investment bank see growth risks in the fact that the price of Brent oil, produced off the coast of Europe, could rise by USD 73 to USD 85 per barrel by 2023.