Oil prices continue to recover from the November dip. Last week, the North Sea variety Brent even hit a seven-year high at USD 89. First and foremost, market participants account for the easing concerns surrounding the Omicron variant for the overall recovery. Recent data shows crude oil supply is tight relative to robust demand. The OPEC+ countries are obviously falling short of their self-imposed production targets. Investment bank Goldman Sachs believes inventories could fall in the summer of 2022 to their lowest level since 2000. Against this background, the investment bankers expect the price of oil to be well above 100 dollars in the coming year. The US Energy Agency is more skeptical. The further development of the oil price will depend above all on the economic prospects and the further development of the global pandemic.
Source
VR AgrarBeratung AG
