(MENAFN- AzerNews)
By Trend
Brent oil prices may rise to $135 per barrel in the second half
of the year amid insufficient supply on the world market, the IHS
Markit consulting agency (part of S&P Global) forecasts in its
analytical report, which was available to TASS , Trend reports.
Currently, Brent oil price is $110 per barrel. However, already
in the third quarter of 2022, the price may rise to $136.3 per
barrel, IHS experts believe. In general, in the second half of the
year, the price of oil will stay at $135 per barrel, and on average
for the year it will be $122 per barrel, IHS adds.
According to agency experts, high prices are caused by the lack
of oil supply.
The experts name the decline in oil production in Russia due to
sanctions, low probability of reaching an agreement on the Iranian
nuclear deal, which will not allow Iranian oil to be brought to the
market, as well as the reduction in free production capacity in
OPEC+ countries as the factors affecting the global oil
production.
According to IHS, as of the second quarter of 2022, the amount
of free production capacity in OPEC+ countries is estimated at 2.7
million barrels per day. However, by the end of the year, the
agency expects the figure to fall to 1.8 million barrels per day
and only Saudi Arabia and the UAE will retain the opportunity to
increase oil production.
IHS experts also draw attention to the transformation of the
global oil market. For example, oil from Russia, Iran and Venezuela
is now sold cheaper than raw materials from other countries, since
there are fewer buyers for this oil due to its place of origin, the
agency notes. According to IHS, this is a sign of 'fragmentation of
the oil market.' 'The global oil market that we knew no longer
exists,' experts conclude.
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