Riyadh: Oil prices could surge to $100 per barrel but only for a brief period, according to Saudi-based capital market company Jadwa.
The firm’s quarterly oil market report said the rise was conditional on an acceleration in gas-to-liquid substitution during the winter months, combined with any unforeseen outages in oil production.
However, this soaring level of prices is unlikely to persist, if it does indeed hit $100, Jadwa said.
The high level of prices would possibly drive OPEC+ to increase production over the current stated levels to stabilize the markets. Moreover, OPEC expects a decrease in global oil demand in the first quarter of 2022. Both of these developments will diminish the possibility of oil prices remaining at $100 in the short term, Jadwa explained.
Jadwa kept their expectation for 2022 Brent oil at $65. Meanwhile, they stated that there is an increasing risk on their full-year 2021 Brent oil forecast of $67.
