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Page added on June 25, 2022
$150 Oil Could Still Happen. Here’s How.
$150 oil could still happen, BofA Global Research indicated in a new report sent to Rigzone this week.
In the report, BofA Global Research outlined that it sees Brent averaging $102 per barrel this year and in 2023 and highlighted that a potential spike to $150 per barrel could happen if European sanctions push Russian oil production below nine million barrels per day.
“Yet the market does not seem to be pricing in a decade-long Russian supply crisis, as long dated oil prices have stayed firmly anchored in our long-term oil price band of $60 to $80 per barrel oil,” BofA Global Research noted in the report.
“Thus, extended sanctions on Russian energy could act as a price floor even if near-dated spot oil price downside risks grow. Even if the world goes into recession, we estimate Brent could average more than $75 per barrel in 2023,” BofA Global Research added.
In the report, BofA Global Research noted that it still assumes no recession, yet, although added that economic growth is constrained by limited energy output, fuel prices are rising, and central banks are hiking interest rates to slow down growth across the broader economy.
“Surging inflationary pressures from food to energy to services, coupled with fast paced interest rate hikes, suggest oil demand will struggle to fully recover to pre-pandemic levels until next year,” BofA Global Research stated in the report.
“The geopolitics (Russia’s Ukraine invasion) behind today’s massive refinery bottleneck are paving the way for a huge U.S. energy (SPR release, export limits), U.S. foreign (Saudi visit), and U.S. monetary (75bps hikes) policy response,” BofA Global Research added.
“How will oil demand destruction play out? Given the strength of the USD, large energy importers such as India, Turkey, South Africa, Japan, Germany or Spain are at the greatest risk of a demand contraction,” the company continued.
BofA Global Research said in the report that, if Russian oil supply does not drop below 10 million barrels per day, global oil demand could grow by 1.7 million barrels per day in 2023. According to a production table accompanying a statement about the latest OPEC+ meeting, which was posted on OPEC’s website on June 2, Russia’s “required production” for July 2022 is 10.83 million barrels per day.
At the time of writing, the price of Brent crude oil stood at $109.11 per barrel. The commodity’s highest close in 2022 so far has been $127.98, which was seen on March 8.
5 Comments on "$150 Oil Could Still Happen. Here’s How."
makati1 on Sat, 25th Jun 2022 5:25 pm
Looking for $200 oil by Xmas. Go for it bitches!
Theedrich on Mon, 27th Jun 2022 4:17 pm
The U.S. thinks Ukraine won’t be nuclear doomsday. The problem with this fantasy is that, the more successful the U.S. is in defeating Russia in Ukraine, the more likely Russia will use nukes to reverse the situation. Conversely, if the U.S. loses in Ukraine, it will be strongly tempted, using its toady tool, NATO, as a front, to use nukes against Russia.
Everyone who has looked at the aggression of the U.S. in eastern Europe over the past three decades knows that it is the Washington foreign policy establishment which started the Ukrainian disaster. Russia (and not just Putin alone) is simply reacting to the mortal threat the U.S. has aimed at it with its machinations to have Ukraine join NATO (and put nukes on Russia’s border, like the USSR did in Cuba decades ago). And, of course, that was after the U.S. pushed NATO’s boundaries far beyond Germany to the edge of Ukraine itself, violently contrary to what it had originally promised the Russians. (But hey, what’s a lie or two when you’re going for global dictatorship. The winners get to write the history books.)
The American populace has been TV-sedated with subliminal advertizing, with “cancel culture” and with lies of every sort drooling out of the mouths of U.S. media shills. The regime has concocted insanities to distract the masses from the vast thievery by Big Pharma, the military-industrial complex, and Big Cyber; said insanities include those about men being able to menstruate and become pregnant, about mathematics being some kind of technique used by Whites to suppress Negroes (average IQ of 85), about queers having rights to participate in women’s sports, about the U.S. having been founded as a way to enslave Afroids, about how teenage girls should have their breasts cut off or be pre-pubescently chemically deformed in order to become neuters, and other bizarre and criminal idiocies. Never mind the criminal importation of millions of parasitic and evil ThirdWorlders and narco-felons under the pretence of “humanitarianism.”
All this is happening under the guidance of our “democratic” government — both parties, but especially the Democrat conglomerate. The aim is to follow the pattern of ancient Rome, and turn the dying republic into an empire with a principate composed of megabillionaire idiots savants.
But that Great Reset (großer Umbruch ) may be short-circuited by nuclear war.
Brennon Kilback on Sat, 2nd Jul 2022 8:33 am
Winter is coming ha ha
Edwin Dare DDS on Sat, 2nd Jul 2022 8:35 am
Central banks are hiking interest rates to slow down growth across the broader economy. Sick!
Time Bazar Night Chart on Thu, 29th Sep 2022 3:41 am
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