The market expects oil prices to rise to $100 per barrel, according to Bloomberg
Participants in the global oil market are forecasting a significant rise in oil prices over the coming year due to the fallout from the war in the Middle East and risks to energy supplies.
This is reported by Bloomberg.
Most participants in the Bloomberg Intelligence survey expect the price of Brent crude to range from $81 to $100 per barrel over the next 12 months.
The survey included 126 asset managers and energy market experts.
Analysts believe that the situation in the Middle East will continue to affect global energy markets for a long time.
Nearly two-thirds of respondents forecast an additional “risk premium” on oil prices of $5–15 per barrel.
Among the main reasons cited are:
- the consequences of the war in the Middle East;
- risks to maritime transport;
- potential navigation issues through the Strait of Hormuz;
- a shift in the balance of power in the region.
At the same time, only a small portion of respondents expect the premium on oil prices to exceed $20 per barrel.
One of the main risks for the oil market remains the potential blockage of the Strait of Hormuz—one of the world’s most critical oil transport routes.
A significant portion of global oil and liquefied natural gas exports passes through this corridor, so any escalation in the region could quickly impact global energy prices.
Global oil prices rose during trading on Thursday, May 21, partially offsetting the sharp drop of the previous day.
Russian oil is on the rise again, shifting the balance of the Russian Federation’s revenues
Oil prices rose amid anticipation of a meeting between Donald Trump and Xi Jinping. Traders are focusing on possible signals regarding a resolution to the conflict with Iran, which has affected global oil supplies.
