After one of the most troubling and volatile years ever experienced by oil markets, prices saw a real roller-coaster in 2020. However, OPEC watchfully monitors the situation in the commodity market, not allowing oil prices to fall too deep or rise too high. Some experts think that even if the cartel decides to increase oil output by the end of the year, the shortage of oil will still be a problem. Hence, prices will remain high. Of course, oil prices will sooner or later slip into a correction. They can also be volatile as much as they were in July. Nevertheless, all these factors do not undermine the general uptrend.
BofA Global Research analysts advise investors to use the correction of the oil market as an opportunity for making a solid profit. BofA does not change its forecast and still expects that Brent crude will certainly rise to $100 per barrel next year.
This year, the average oil price is projected to equal $68 per barrel. However, the bank is certain that in 2022, Brent futures will cost an average of $75 per barrel.
Additionally, the average price of WTI crude is expected to total $ 65 per barrel in 2021 and next year it may reach $71.
According to BofA, the global oil shortage will be at the level of 1.4 million barrels per day this year. In 2022, the same indicator could total 400,000 barrels.
OPEC members believe that by the end of this year, demand for oil will grow by as much as 5 million barrels per day compared to the crisis year of 2020. In 2022, demand will be 4% higher than this year, reaching 28 million barrels per day. Such figures are given in the July report.
It is also stated that the year 2022 will be the most crucial year for the energy market as demand is projected to recover to the levels of 2019 next year.
