Oil prices until the end of 2022 will range from $40 to $60 per barrel, according to a review by analysts at Citigroup, Ed Morse and Eric Lee. Previously, experts believed that the upper limit of price changes in this period will be at $65 per barrel. The forecast is worsened by the excessive supply of oil by both OPEC countries and shale oil producers in the US.
In the case of a sharp increase in overproduction, the price may fall to $30 per barrel, while geopolitical risks and cuts in supplies can provide temporary growth of up to $70 per barrel, Citi analyst note. This year, the price of the nearest contract for Brent crude oil decreased by 10%. During trading on Monday, the October futures fell 0.4%, to $ 52.52 a barrel.
Brent oil is currently down 0.40 percent to $ 52.45, while WTI oil drops 0.14 percent to 48.59 dollar barrel.
Oil prices rose sharply Friday afternoon and evening after Baker Hughes rigging showed a decline of five active oil rigs to 763 last week. The number of active drilling rigs has thus fallen weekly, for the second time this month.
But despite the decline in the US dollar, oil production in the US has increased to its highest level in over two years, according to US Department of Energy figures last week. Nevertheless, stocks fall, noting some market players.
Although production is increasing, there has been a decline in stocks. This indicates that the cuts to OPEN production. Prices are currently in the range of 44 to 52 dollars, said CMC Markets analyst analyst Ric Spooner.
Barclays downgrade its recommendation on the Statoil share to “underweight” from previous equal-weight.
Statoil ASA (ADR) (NYSE:STO) closed Friday 1.71% higher at $18.41.