$100 Forecasts Increased as Oil Prices Surpassed $95
As concerns about global demand growth and supply shortfalls grew, oil prices rose above $95 and $100 predictions began to rise.
Showing new signs of congestion due to supply cuts by OPEC+ leaders, oil rose to its highest level in 10 months. Brent oil rose above $95 for the fourth day in a row.
As refiners struggle to produce enough diesel ahead of a seasonal surge in demand, Chevron CEO Mike Wirth said he expects oil prices to rise back to the $100 level.
INCREASED BY MORE THAN 30 PERCENT IN 3 MONTHS
Crude oil has risen more than 30 percent since mid-June as Saudi Arabia and Russia restricted exports to clear inventories and boost prices.
Recovery prospects in the world’s two largest economies, the United States and China, also supported oil’s rise. Rising energy costs are likely to increase inflationary pressures and complicate the task facing central bankers.
“The risk of oil prices rising to $100 in the near term may be increasing with the current momentum, but we have little confidence this is sustainable,” said Charu Chanana, market strategist at Saxo Capital Markets, in a statement on oil prices.
Additionally, Chana said OPEC+ cannot control the demand side as higher inflation would mean tighter monetary policies.
Saudi Arabia’s Crown Prince Mohammed bin Salman said on Monday that OPEC is working to keep oil markets stable and increase global energy security without targeting a specific price level, and that production plans will be reviewed every month. .
$100 PREDICTIONS ARE INCREASING
In the report published in early September by the commodities research unit of Goldman Sachs, one of the main US banks, it was estimated that the price of a barrel of Brent oil could reach $107 in 2024 due to supply cut decisions. from Saudi Arabia and Russia.
Dr., head of oil research at London-based energy consultancy CMarkits. Yousef M. Alshammari stated that if, in addition to cuts in oil production, the US Federal Reserve (FED) keeps the interest rate constant at its meeting this month, the level of $100 oil could be reached.
Osama Rizvi, who works as an energy analyst and economist at Primary Vision, also predicted that a $100 oil price could be seen, but it would not be permanent at this level.
Nadia Martin Wiggen, one of the directors of Svelland Capital, also stated that Brent oil could exceed $100, as in the first months of the Ukrainian war.
Independent macroanalyst Piero Cingari also stated that oil can rise, but this can drag developed economies into recession, and if there is a recession, oil prices will fall.