Analysts predict an increase in oil price from $55 to $60 per barrel on the background of the expected growth in demand.
Bank of America has revised its forecast for Brent crude oil price in 2022 from $55 to $60 per barrel on the back of expected demand growth, the bank said in a review.
“Given the decline in inventories, tight control over reserve capacity by OPEC + and the expected growth in demand, we raise our long-term forecast (for 2022) for Brent crude prices from $55 to $60 per barrel,” the review notes.
In early March, the bank recalled that the OPEC+ countries made an unexpected decision regarding the recommendations on oil production levels for April 2021. Although the initial agreements allowed to increase production by 1-1. 5 million barrels per day (b / d), it was decided to maintain its current production level. An exception is made for Russia and Kazakhstan, which can increase production by 150 thousand b/s. At the same time, Saudi Arabia will continue to reduce production by 1 million b/s voluntarily.
“Given the global collapse of investment in the oil industry, OPEC + now controls most of the world’s oil reserves,” analysts at Bank of America said.