Crude oil has been extending its bullish trend despite efforts of some countries to push prices down. Market quotes have topped $88 a barrel, the level last recorded in October 2014. Oil prices have settled above this level since then. Commodity experts are confident that prices are set to hit new highs.
According to the consensus, crude oil is expected to hover around this level until the end of 2022. In the best-case scenario, oil prices will hardly move far away from the current levels. Experts pinpointed factors to stall further growth in oil prices such as the glut in the global oil market and the likelihood of new lockdowns around the world that could dent demand for energy. Meanwhile, large oil consuming countries headed by the US are pursuing the joint energy policy of cheap oil prices. Perhaps their policy will bear fruit and oil prices will eventually fall to $65-75 a barrel. Nevertheless, the most realistic scenario suggests that crude oil will trade in the corridor of $70-80 a barrel. The average price is expected at about $70.72 a barrel.
In late 2021, the US built up an alliance with some world’s large oil consuming nations with a view of crashing global oil prices. Japan, South Korea, and India have to deal with the strain of unfairly high oil prices. All of them agreed to release crude oil from their national strategic reserves amid a rapid rally in the global oil market. The US has already sold some of crude from its strategic reserves. Japan and South Korea are also ready to begin tapping their petroleum reserves.
