Azerbaijan news

Oil may rise to $ 175 per barrel

Jamie Dimon, CEO of JPMorgan, expects oil to rise to $ 175 a barrel by the end of this year.

Goldman Sachs estimates that oil will average $ 140 a barrel in the third quarter of this year.

Forecasts

The Financial Times recalls that on the eve of the financial crisis, oil reached $ 147 per barrel, and then the situation worsened. In 2008, on the eve of Christmas, oil fell to $ 40 per barrel. However, the newspaper notes that this time there are good grounds for optimistic forecasts.

First, the energy crisis, which began with Russia’s squeezing of gas supplies to Europe, is not over. The main issue is the lack of oil, and the growing difficulty of access to the market in Russia, which is under sanctions.

First, the energy crisis, which began with Russia’s squeezing of gas supplies to Europe, is not over. The main issue is the lack of oil, and the growing difficulty of access to the market in Russia, which is under sanctions.

The European Union has imposed an embargo on the transportation of Russian oil by sea. As many buyers in Europe have already given up on Russian oil, India and China are buying oil at a significant discount.

Another problem is the expected ban in the EU and the UK on the insurance of ships carrying Russian oil. In this case, Russia will be removed from the traditional tanker market and oil transportation options will be significantly reduced.

2 million barrels less oil per day

Raw strategist Rory Johnston says many large ports will simply not accept unguarded and uninsured tankers. He estimates that by the end of the year, Russia’s oil production will fall by 20 percent, in other words, 2 million barrels per day.

Production in Russia may fall further. The International Energy Agency forecasts a decline of 3 million barrels per day, which is almost equal to the full production of Kuwait.

The Financial Times writes that this potential decline will not be easy to compensate. Western governments have already turned to strategic reserves, pumping up to 1 million barrels of oil a day from the start of the Ukrainian occupation. This slowed down the price increase, but the opposite process did not begin.

Meanwhile, China is reopening, people are starting to travel, and demand is rising. All these factors indicate that oil prices will rise further.

latest news



Azerbaijan news

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button