Against the background of the escalation of the conflict between Russia and Ukraine, the price of oil could rise to $120 per barrel. This price was predicted by investment strategist David Roche, his words leads CNBC.
The analyst considers uncertainty in geopolitics to be a “ghost” that could undermine the situation on world markets. According to Roche, in the event of a military conflict and the imposition of sanctions that would complicate exports, oil prices will rise sharply. Since the beginning of the year, the benchmark Brent has been steadily rising in price, from $80 per barrel prices rose to $90.5.
Previously, the author of books on the oil and gas industry and Pulitzer Prize winner Daniel Yergin spoke about the prospects for rising oil prices. According to the economist, increased geopolitical tensions could provoke a “panic reaction in the market.” An excellent stabilizer of the oil market in the current situation is the activity of American producers, who are actively increasing production, he believes.
In early February, OPEC+ decided to continue increasing oil production by 400,000 barrels per day in March, despite record price increases and requests from large consumers such as the US and India to increase production levels.
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