Expectations of the US Energy Information Administration indicate that the average price of Brent crude will decrease to $98/bbl at the end of 2022, and the average price of West Texas crude is expected to drop to $92/barrel at the end of 2022.
According to the quarterly report on the global petroleum situation, issued by the Organization of Arab Petroleum Exporting Countries “OAPEC, the global oil market is witnessing remarkable fluctuations and is surrounded by a high state of uncertainty, with which it is difficult to determine a specific level that oil prices may reach, but the Organization of Arab Petroleum Exporting Countries expects ( OAPEC predicted that crude oil prices will decline during the remainder of 2022, against the backdrop of growing fears of slowing global economic growth, and the associated decline in demand for crude oil and its products, in light of the global central banks raising interest rates to curb rising inflation. In addition, the US dollar has risen to its highest level since mid-2002, making crude oil the most expensive in other currencies.
The report indicated that one of the factors that is expected to limit the expected decline in prices is the growing risk of supply shortages in conjunction with the agreement of the finance ministers of the Group of Seven major countries to impose a ceiling on the prices of Russian oil exports, and Russia pledges to stop selling oil to countries that will implement this measure. .
The report continued, in addition to the European ban on Russian oil imports, scheduled to start in early December, and the dwindling expectations for the return of Iranian oil exports to the market in the near term, and it is expected that the OPEC group’s keenness to support the stability and balance of the oil market, and the related decisions On reducing the target production level, in support of crude oil prices.