Morgan Stanley has forecast further growth in crude oil and has said that Brent crude will cross $ 90 per barrel in the year 2022.
Crude oil became costlier by 5 percent this week
The process of increasing crude oil prices continues in the year 2022 as well. There is an increase in the prices amid the possibility of impact due to different reasons in the worldwide supply (crude supply). This week, Brent Crude has seen a rise of more than 5 percent. With the increase, Brent has come back to close to $ 82 per barrel.
How was the movement of crude oil in the week
During the week, the price of Brent crude has increased from the level of 77.78 to the level of 81.75. That is, Brent has become expensive by about $ 4 per barrel during the week. Which is an increase of 5.1 percent over the previous week. Prices were at $ 75.8 per barrel a month ago. Earlier on October 26, Brent was at the level of $ 86.4 per barrel, which is the highest level of Brent in one year. Since October, there has been a lot of volatility in crude oil. In early December, prices fell below $70 a barrel after apprehensions about Omicron surfaced.
Why did oil prices rise this week?
The increase in oil prices this week has been seen in view of the possibility of impact on the supply. Reuters According to the information given by KY on Thursday, there is a possibility of oil supply being affected due to the ongoing unrest in Kazakhstan. Kazakhstan is a member of OPEC Plus, a group of oil producing countries. At the same time, this week, oil production in Libya has come down by about 7 lakh barrels per day. Due to these reasons, there has been an apprehension in the market that the supply of oil may be affected, so the prices have seen a rise in the futures market.
OPEC Plus will increase oil production
The 23-member OPEC Plus coalition, led by Saudi Arabia and non-OPEC member Russia, recently announced that it would produce 400,000 barrels more per day in February. The gradual restoration is in line with the plan. According to experts, after the news of the fast-spreading Omicron, there was a sharp fall in crude oil at the end of November, although now the prices are improving. After which the countries have now decided to increase oil production.
Rise in crude oil prices will continue this year
Market experts are anticipating the prices to reach higher. Morgan Stanley has given estimates that further growth in crude oil is expected and in the year 2022, Brent crude will cross the level of $ 90 per barrel, according to Morgan Stanley, there is a steady increase in the demand for crude oil. But there is no indication that the production will increase according to the demand, so there is every possibility that the increase in crude oil will continue.