Oil prices on the rise, more to come!
Even if seems that OPEC want to increase production, we must wait to see if it will happen, because increasing the supply would not necessarily fulfil the demand.
Oil production will moderately increase and therefore it should keep the market in deficit in the coming months. Therefore, production in 2022 will be well below previous expectations.
In the UK, the fuel shortage is crippling the country. Many petrol pumps are forced to close due to the lack of hauliers delivering fuel across the UK.
WALL STREET BANKS PREDICT THAT THE PRICE OF OIL WILL SKYROCKET WHEN COVID-19 FADES AWAY
Big banks are in leveraged trades, to keep petrol prices up, as it’s the lifeblood of the industrial military complex of the United States (“petrol dollars”). The financial titans believe that the long-oversupplied oil market is tightening up more quickly than expected as global economic growth fuels demand.
JPMorgan Chase and Goldman Sachs, consider that the expected rise in the price of gasoline, is based on the belief that fiscal stimulus will boost consumption. Such a disconnect between demand and supply, will fuel a lasting surge in prices of the underlying commodity.
The head of oil and gas at JPMorgan, Christyan Malek, said: “We’re going to be short of oil before we don’t need it in the years to come […] We could see oil overshoot towards, or even above, US$100 a barrel.”
For Jeffrey Currie, the Goldman Sachs analyst believes that there are real risks that oil will trade in the US$80 range “or even higher this year”. [1]
The price is sitting at 80 $ / barrel as of today. We can see that what the Wall Street banks forecasted, is already happening. Hence, we suggest planning your trips before getting caught in the eye of the storm.
If you need help just contact us and we will guide you through these rough seas.
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