The price of Brent crude oil will reach $ 120 by the end of June 2022, writes Bloomberg, citing the forecast of analysts at Bank of America.
The Bank considers the current global energy crisis to be the main catalyst for growth, which has caused a sharp rise in energy prices. A month ago, the American lender predicted that oil prices would rise to $ 100 within six months if the winter is colder than expected – then it was the temperature that was considered the main driver for Western trading floors.
Bank analysts now believe that global oil demand will exceed supply over the next year and a half, which will affect the level of storage capacity, and hence prices, as happened in Europe this fall.
Rising demand for gasoline, diesel and jet fuel, coupled with refining capacity constraints, could further accelerate oil price increases next year, BofA said.
On Thursday, November 4, an OPEC + meeting will take place, at which the cartel members will discuss further plans to increase oil production. Since August of this year, the alliance has been increasing production by 400 thousand barrels per day per month, hoping to completely withdraw from obligations to reduce production by the end of September 2022.
Large oil consumers, including the United States, China and India, are asking OPEC + to increase supply amid strong increases in oil prices, but Saudi Arabia (the de facto leader of OPEC) is taking a cautious stance on this issue due to uncertain future demand.
On the London ICE exchange, the price of a futures contract for Brent crude oil for January delivery at 10:28 Moscow time is $ 85.12 per barrel, on the New York Mercantile Exchange – $ 84.71 per barrel at the close of trading on November 1.
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