By: Mohit Handa and Malligeswari P --
23 January, 2022
Crude oil prices rose significantly in the past two months due to strong global demand, especially from China. The current price momentum may push the oil prices to a range pf $90 to $95/bbl. Oil prices may face headwinds if and when OPEC eases production cuts. Higher interest rate expectations in the U.S., appreciation of the U.S. Dollar can also slam down the brakes and eventually the price is expected to consolidate in a broad range of 60–95 $/bbl in 2022.
2022 Implications/Risks
High inflation, especially led by energy prices
Increase in interest rates
Increase in crude oil derivative prices
(Source: Beroe Analysis)
Trend Expectations
Short Term
Prices are expected to test 90 $/bbl plus levels
Long Term
Prices expected to consolidate within 60–90 $/bbl for the next 6–12 months