Brent crude traded at $ 107.03-125.19 a barrel and WTI crude traded at $ 101.58-123.68 a barrel on the New York Mercantile Exchange last week.

The price of Brent crude oil was $ 114.81 per barrel as of 15:10 on June 30, 2022, and the price of WTI crude oil was $ 106.4 per barrel, compared to the previous week. Brent oil prices rose 1.25 percent and WTI oil fell 0.38 percent.

BRENT AND WTI OIL PRICE RESEARCH

  (2022.01.01-2022.06.30)

Source: www.oilprice.com 

Oil price forecast (2022): Will the commodity continue to rise?

Oil prices continue to hover around 14-year highs after unwinding supply chains and Russia’s invasion of Ukraine threw demand and supply relationships completely off balance.

The oil price trend has historically been tied to broader political and economic events, including the 1973 Organisation of the Petroleum Exporting Countries (OPEC) crisis and the recession instigated by the 2007 to 2008 banking crisis. Prices have also been prone to seasonal effects based on fluctuating demand for heating.

Before the coronavirus pandemic, oil had enjoyed five years of relatively low prices, peaking around $75 in October 2018, but typically hovering around the $40 to $60 range between 2015 and 2020.

There were periods of higher prices linked to the global financial crisis of 2008 and Russia’s 2014 annexation of Crimea.

Historic circumstances during the Covid-19 pandemic materially reduced demand for travel and the transport of freight. The commodity turned negative for a brief period in April 2020, hitting -$37.63 on 20 April as producers tried to offload excess barrels. 

The commodity proceeded to gradually nudge itself back up the curve as restrictions loosened and the winters of 2020 and 2021 approached. But the oil price was sent into overdrive by Russia’s invasion of Ukraine, hitting highs last seen during the 2008 financial crash. The price has risen more than 61% in the year to date, surpassing $120 a barrel for the first time since 2008.

In a Brent crude oil price forecast that targeted a price of $103 a barrel in the second half of 2022, the EIA said oil price movements were largely dependent on the situation in Russia. A long-term oil price forecast for 2023 by the EIA gave a WTI forecast price of $93.24.

Both Citigroup and Barclays raised their oil barrel price predictions for this year amid ongoing delays to a deal with Iran, with Citi predicting an average price of $113 per barrel, and Barclays giving a Brent crude price target of $111 for this year and the next. In a report to clients, Goldman Sachs predicted that the price of oil could hit $140 this summer.

https://capital.com/oil-price-forecast

2022-07-01