Barclays predicts higher oil prices next year
News_Code: 355449 10/2/2021 11:05:56 AM
Barclays predicts higher oil prices next year
Barclays raised its forecast for oil prices in 2022, citing continued demand improvements and deepening supply shortages.
 

The British bank raised its forecast for Brent oil prices $ 9 to $ 77 a barrel next year, partly due to less confidence in reviving the US-Iran nuclear deal.

Expectations of limited supply, along with a dramatic rise in coal and gas prices, pushed up oil prices on Tuesday for the sixth day in a row. Brent oil futures briefly climbed above $ 80 a barrel, and the US oil index rose to about $ 76, but last time Brent crude fell 75 cents, or 0.9 percent, to $ 78.78, and the US oil fell to $ 74.85.

Barclays analysts wrote in a note that the increase in production of OPEC Plus will not close the gap in oil supply until the first quarter of 2022 because in a situation where the capacity of some OPEC Plus producers to increase production is limited, demand recovery is likely to exceed supply.

OPEC Plus agreed this month to continue its plan to gradually increase production, which it approved in July. But Barclays analysts point out that US oil's limited threat of market share means that OPEC Plus producers have no urgency to accelerate their production growth.

According to Reuters, Morgan Stanley also predicts that the oil supply shortage will continue in 2022, and prices in an optimistic scenario will reach $ 85.

Goldman Sachs also raised its forecast for Brent crude by $ 80 to $ 90 a barrel this week, following a faster-than-expected recovery in fuel demand from the outbreak of the Coronavirus delta and supply disruptions.