empty
 
 
28.12.2021 02:10 PM
Forecast for oil's price in 2022

This image is no longer relevant

The next OPEC+ meeting will take place in early January, in which the group may update its planned schedule for increasing production. So far, OPEC+ has not given any indication, but the probability of an increase in production beyond the schedule does represent a serious potential risk for the markets.

The second risk option is that historically shale oil production has grown rapidly, and there is a chance that if prices remain at around $80 per barrel of Brent crude for a long time, companies may seek to increase production. Climate discourse can slow this down.

This image is no longer relevant

Brent crude oil prices may remain high in 2022. During the year, prices will average about $ 70 per barrel, especially taking into account the potential of the summer tourist season.

This image is no longer relevant

The summer tourist season can be supported by both the reopening associated with COVID-19 and the depressed winter tourist season, which forces people to abandon plans.

Rapid economic growth combined with heavy supply chains has led to inflation. Inflation can have a negative impact on growth, damaging oil prices and, consequently, the argument that oil prices will remain high. In addition, the Fed's tightening of monetary policy may slow down the market.

If prices remain high in the next few months, the possibility of higher capital expenditures for producers will remain another risk. However, despite this, analysts expect oil markets to perform well in 2022.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $9000 more!
    In May we raffle $9000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback