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Oil Prices Could Peak to $100 in 2022

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According to Bank of America Corp (NYSE:BAC)’s analyst Francisco Blanch, oil prices could peak to $100 next year if the high demand continues. The limited supply and ineffectiveness of shale in the U.S. have sent oil to the highest since 2013.

Q1 2021 hedge fund letters, conferences and more

Brent surpassed the October 2018 high by reaching $75 a barrel, and things are bound to get worse by the increasing demand as the economic rebound shapes up.

Low crude inventories in the U.S.

Royal Bank of Canada (TSE:RY) stated: “Shale drilling in the U.S. became so productive in the middle of the last decade that it seemed that supply would always remain high enough to keep prices low, regardless of what OPEC and other oil-producing countries did.”

As informed by the U.S. Energy Information Administration, crude inventories in the country dropped by 7.6 million barrels last week to 459.1 million barrels, way over analysts’ predictions of 3.9 million polled by Reuters.

From Trafigura Group to Goldman Sachs Group Inc (NYSE:GS), they anticipate that oil could reach $100 under the right conditions.

Pandemic slowed down U.S. drilling

COVID-19 caused fuel prices to drop and forced producers to slow down drilling. However, what followed was a real surprise.

Instead of reverting to normal drilling rates when demand for fuel picked up again, most producers held back to save liquidity and keep their balance sheets low. At present, U.S. oil production is nearly 12% below its peak levels, and few analysts expect the activity to become more dynamic.

Additionally, OPEC has restricted drilling, which means that “the demand for fuel is increasing, but the supply has not yet recovered, pushing prices up,” as noted by JPMorgan Chase & Co (NYSE:JPM) experts.

Demand increase

“It is almost certain that electric cars will cause a drop in demand for oil, but last year those assumptions were turned around,” add JP Morgan.

In fact, according to Phil Flynn, senior analyst at Price Futures Group in Chicago, “People are getting back in their cars again and that’s showing up in the numbers in a big way. That’s going to keep the upward pressure on prices.”

Analysts warn that the global demand for oil is bound to increase in the second semester of 2021, so the OPEC alliance could “boost production further from August, and the coming meeting next week is expected to be material for policy and prices going forward,” said Rystad Energy oil markets analyst Louise Dickson.

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8 Comments on "Oil Prices Could Peak to $100 in 2022"

  1. Theedrich on Mon, 28th Jun 2021 4:25 am 

    Biden & his hyena are narco-money addicts. The flowchart is:  Mexican narcostate ➨ narcotics & criminals ➨ BIDΞN-opened U.S. border ➨ Silicon Valley, Hollywood + other brainwash organizations ➨ Leftist $billions & propaganda ➨ bribe-ocrat Democrats ➨ American narcostate.

    This is the reason for the sudden suicidal lurch by the U.S. government.  Look no further than Dorsey (Twitter), Bezos (Amazon), Cook (Apple), Zuckerberg (Facebook), Zucker (CNN), Soros (Open Society) and their ilk.  The vast sums from the international criminal organizations and their traffic in drugs, whores, aliens are the true engine behind all of the lacrimose blather about “the children,” the hyena’s “progress,” “humaneness,” “White racism/supremacy,” “BLM,” and similar psychowar terminology twisting the tiny minds of the electorate.

    It is now clear why the tech (13.2% turnover rate) and social-media companies are pushing for “amnesty” for the Left-backed invasion.  They need the autistic psychopathy which makes sophisticated, rapid computer programming and other “creativity” possible by short-circuiting the brain’s wiring, even though it destroys the addict (to say nothing about his or her family).  In recent times the importation of cocaine, meth, &c. has been joined by the domestic production of crystal meth, which addicts people on first use, and results in an average life expectancy of ~5 years.  As far as “treatment” is concerned, it results in a 90% relapse rate.  One “benefit” of the American change into a drug swamp:  an exponential rise in the nationwide murder rate.

    All this is the true mechanism behind the U.S. political Swamp and Deep State.  It is the true reason why, under BIDΞN and his laughing hyena, all efforts to stop the invasion from the south have been stopped.  The narco-tunnels under the U.S.-Mexican border have turned that frontier into Swiss cheese.  And for every (sob) “abandoned child” caught crossing into the U.S. from Méjico, 10 drug- and people-smugglers get through and make money for Leftist bribe-ocrats.

    There is only one name for the current administration:  Hell.

  2. pls. feel at ease among friends. were all lovers of supremacist muzzies here on Mon, 28th Jun 2021 6:36 am 

    x

  3. Biden's hairplug on Mon, 28th Jun 2021 7:10 am 

    Relevant reading shortly before social collapse. The missing topic in this list is vegetable gardening.

    “It’s Gonna Blow”

    https://www.unz.com/freed/its-gonna-blow-be-a-miracle-if-it-dont/

    “The Future of the Jews”

    https://www.unz.com/freed/the-future-of-the-jews/

    (Spoiler: not much of a future, sorry commissar apneaman)

    Jews with remarkable consistency have been described for centuries as smart, greedy, combative, clannish, “pushy,” exploitative, and arrogant.

    Reed should have added: hypocritical.

    The appearance of Jewish power is strong. Four of nine justices of the Supreme Court, a majority of Ivy presidents, CEOs of television networks. Zuckerberg of Facebook, Sergei Brin co-founder of Google. the New York Times, Time-Warner, Disney, much of Hollywood, huge parts of retail, most of the big publishing houses in New York. Anyone who has worked in Washington knows that Jewish control of Congress and the media is near absolute.

    “Race: A Very, Very Dismal Reality”

    https://www.unz.com/freed/race-a-very-very-dismal-reality/

    “The Nobility of Savages”

    https://www.unz.com/freed/the-nobility-of-savages/

  4. at the precipitate on the eve of the grate reset the question before us is whether elite whitey supertards caused the melting of two miles of ice above most of canada and northern US on Mon, 28th Jun 2021 11:25 am 

    most experts agree there were no elite whitey supertards at the time. experts say archeological evidences show the entire expanse were full of supremacist muzzies

  5. Dooma on Sat, 3rd Jul 2021 12:36 am 

    WTF are you going on about now, Theedrich? It is not even relevant to this article.

    Tech giants responsible for the current supply of drugs in the US? So what about the crack problem before the internet? Or all of the coke that hit the clubs in the ’80s?

    I think that you are railing a shitload of charlie every time you post a rant.

  6. TIMOTHY on Sat, 3rd Jul 2021 12:37 am 

    WTF are you going on about now, Theedrich? It is not even relevant to this article.

    Tech giants responsible for the current supply of drugs in the US? So what about the crack problem before the internet? Or all of the coke that hit the clubs in the ’80s?

    I think that you are railing a shitload of charlie every time you post a rant.

  7. Biden's hairplug on Sat, 3rd Jul 2021 3:46 am 

    Project demolition UK proceeding swiftly:

    https://www.thenational.scot/news/19417181.boris-johnson-provokes-twitter-storm-giant-english-flag-photoshoot/

    “Boris Johnson provokes Twitter storm with giant English flag photoshoot”

    https://www.thenational.scot/sport/19416803.british-royals-attended-england-football-matches-two-decades/

    “‘British’ royals have only attended England football matches for two decades”

    BoJo and Royals are making it a little too clear how they see Wales and Scotland: dependencies for the greater glory of England. Together with the existence of the EU, offering a viable alternative to London, this is a perfect recipe to estrange these territories for all times. Oh wait:

    https://www.bbc.com/news/uk-wales-politics-57586556

    “No more flags on video calls, Welsh Parliament members told”

    (That’s the Union Jack targeted here).

  8. Winston Churchill on Tue, 20th Jul 2021 11:58 am 

    Bidens hairplug has a real chip on the shoulder or what?
    Did some limey chick refuse to suck your cock or something?

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