Home » Energy experts: U.S. crude oil will further return next year, oil prices are difficult to reach 100 US dollars

Energy experts: U.S. crude oil will further return next year, oil prices are difficult to reach 100 US dollars

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© Reuters. Energy experts: U.S. crude oil will further return next year, oil prices will hardly reach $100

The Financial Associated Press (Shanghai, editor Bian Chun) reported that Dan Yergin, an energy expert and vice chairman of the market research organization IHS Markit, said on Wednesday local time that more than a year after OPEC and its allies “in control”, U.S. oil production is returning and will increase further in 2022. He pointed out that US crude oil production may increase by 900,000 barrels per day.

As the new crown virus pandemic has disrupted demand, American oil companies have cut production in 2020. As of now, supply has not returned to the level before the epidemic.

According to data from the U.S. Energy Information Administration (EIA), in 2019, the U.S. produced 12.29 million barrels of crude oil per day. In 2020, this figure is 11.28 million barrels, while it is expected to be 11.18 million barrels in 2021 and 11.85 million barrels in 2022.

“The United States is back,” Yekin said. “In the past year and a half, OPEC+ has been dominating the situation, but US crude oil production has already returned, and it will return further in 2022.”

Yekin pointed out that the US Secretary of Energy has asked oil companies to increase production. “Of course, this is because the Biden administration is deeply concerned about inflation and its political impact.”

Oil prices are unlikely to reach $100

Yekin also predicted that oil prices will remain in the range of US$65 to US$85 per barrel in 2022. “Unless major geopolitical turbulence occurs,” oil prices are unlikely to reach US$100.

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However, Goldman Sachs recently predicted that as the global economy recovers from the epidemic, oil supply growth is too slow and may not be able to keep up with record demand. It does not rule out the possibility that oil prices will hit $100 in the next two years.

Damien Courvalin, head of research for the bank’s energy business, said that before the emergence of the latest mutant strains, driven by the continued recovery in demand for aviation fuel, etc., global oil demand has reached a record level. “Although market demand is temporarily suppressed at present, when the impact of the epidemic subsides and the international tourism market further recovers, global oil demand will rebound rapidly.”

International oil prices did not change much on Thursday. As of now, they have fallen slightly by 0.14% to US$79.1 per barrel, while they have fallen slightly by 0.16% to US$76.44 per barrel.

Oil prices hit a new one-month high on Wednesday, and Brent crude broke the $80 mark in intraday trading, because despite the surge in Omi Keron cases, US fuel demand remained strong. Data released by EIA on Wednesday showed that US crude oil inventories were 420 million barrels in the week of December 24, a month-on-month decrease of 3.6 million barrels, a drop that exceeded analyst expectations.

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