Brent oil reaches 90 dollars: are we aiming for 100?

Brent crude oil hit $ 90 after inventories revealed a stable, indeed slightly lower, situation. This has pushed up the forecasts of investment banks and intermediaries

A number of Wall Street banks, including Goldman Sachs, have predicted that oil will hit $ 100 a barrel this year as the global market shrinks. ”The market has basically been in persistent under-supply since mid-2020, thanks OPEC + cuts and the continued recovery in oil demand, ”said Helge Andre Martinsen, senior oil analyst at DNB ASA.

"We fully recognize that the world is not running out of oil resources, but we could enter a tightening on the oil market triggered by too little investment and a rapid recovery in oil demand."

Prices are also moving amid growing concern over a possible Russian foray into Ukraine, with President Biden saying he would consider sanctioning Vladimir Putin if the Russian leader orders an invasion.

The price managed to rise despite the drawdown from reserves was lower than expected. The causes are geopolitical: Ukraine, China, North Korea and the Persian Gulf.

"Crude oil prices are soaring based on expectations that an already tight oil market could see geopolitical risks exacerbate the current imbalance," said Ed Moya, Oanda's senior market analyst for the Americas.

"The risks do not only concern the border between Russia and Ukraine, but also include talks on Iranian nuclear power and also North Korea".

Underlying this is also a growing consumption forecast for China which should have a rich Chinese New Year, or rather less than last year. Strong demand now leads to a sharp rise in prices.

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The article Brent Oil reaches 90 dollars: are we aiming for 100? comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/petrolio-brent-arriva-a-90-dollari-puntiamo-ai-100/ on Wed, 26 Jan 2022 20:47:07 +0000.