Recent developments in the oil market
During trading on Wednesday, December 14th, Brent oil traded in the market at a price 80.70 dollar per barrel. Raw materials have risen in price 2.4% during the trading session.
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US oil, known as West Texas Intermediate, closed trading at 77.28 dollar per barrel. Since the start of the trading day, commodities have risen in price $1.94 according to the data Reuters.
According to Bloombergthe price of oil stopped at the following levels:
- Brent Crude Oil traded level $82.70 per barrel (+2.02%);
- A barrel of US WTI oil trades at one price 77.19 dollar per barrel (-0.09% of the dollar).
What affects the price of oil
Oil prices showed a positive momentum following the announcement of forecasts by OPEC and the International Energy Agency. Both organizations expect demand for commodities to pick up next year.
Furthermore, they predict that in parallel with the slowdown in inflation, the Federal Reserve will weaken its monetary policy, he informs Reuters.
Expert forecasts for oil prices:
- Goldman Sachs experts expect Brent oil price to catch up it could go as high as $130 per barrel by the end of 2022. They point out that there is a shortfall in the market, despite the slowdown in economic growth, so this drives up prices.
- If the recession scenario comes true, then it is expected oil can collapse to $65 this year, followed by a drop to $45 in 2023. That will directly affect demand, according to a Citigroup report.
