BAKU, Azerbaijan, Oct.4
By Leman Zeynalova – Trend:
Brent oil prices are expected to drop in 2022 from the current levels, Trend reports with reference to Capital Economics, UK-based research and development company.
The company forecasts Brent prices to reach 75 barrels per day in Q4 2021, before declining to $71/bbl in Q1 2022, $68/bbl in Q2, $64/bbl in Q3 and $60/bbl in Q4.
At the same time, Fitch Solutions notes that rising output from OPEC+ and non-OPEC producers in 2022 will give rise to oversupply in 2022, given the weaker demand growth.
“The mismatch in supply growth will a remain key element in the price downturn we expect for 2022, although we are likely to see elevated prices at the start of the year. However, we caution that technical indicators and futures prices still remain highly bullish through the bulk of 2022, in contradiction with our fundamental outlook. If Brent prices break out above USD80/bbl in near term, we could see prices test the next level of resistance at USD85/bbl, although this does not form our core view. Rather, we expect high oil prices will eventually cool demand as recent USD strength will add to pain for oil importers, who will cut consumption in response, ultimately pulling prices lower before a balance is restored and prices begin a gradual uptick on an average annual basis from 2023,” said the company.
Brent prices briefly rose to above USD80/bbl the last week of September but failed to close above this key level as prices retreated on increased oil storage in the US.
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