Posted on 05/27/2022 1:07:26 PM PDT by blam
Brent Crude prices could jump to well above $150 per barrel if Russia’s oil exports fall off a cliff in the coming months, according to Bank of America.
“With our $120/bbl Brent target now in sight, we believe that a sharp contraction in Russian oil exports could …. push Brent well past $150/bbl,” analysts at Bank of America (BofA) Global Research wrote in a research note on Friday carried by Reuters.
In a base-case scenario, Bank of America expects Brent Crude prices to average $104.48 a barrel this year and $100 a barrel in 2023.
Early on Friday, Brent Crude was trading at over $117 per barrel, the highest in two months, amid tight fuel supplies globally and bullish prospects of demand with the U.S. driving season beginning with the Memorial Day holiday weekend and Shanghai in China set for gradual reopening from June 1st.
There is a distinct possibility of a sharp drop in Russian oil exports as the EU continues to seek consensus and persuade Hungary to drop its opposition to a Russian oil embargo. Reports have it that some EU member states are inclined to accept a temporary exemption of Russian pipeline supply to central Europe via the Druzhba pipeline from the embargo as a bargaining chip to convince Hungary to agree to a ban on imports of Russian seaborne oil.
Russia is boosting supply to India and China, but Asian buyers are unlikely to be able to absorb all the Russian oil unwanted in the West, analysts say.
In its latest Oil Market Report this month, the International Energy Agency (IEA) estimated that Russia already shut in nearly 1 million bpd in April.
So far, Russian exports have held up, but as of May 15, the major international trading houses had to halt all transactions with state-controlled Rosneft, Gazprom Neft, and Transneft, the agency noted.
“Following a supply decline of nearly 1 mb/d in April, losses could expand to around 3 mb/d during the second half of the year,” the IEA said, referring to Russia’s oil supply.
I’m gonna have to move to the country and get myself a horse and buggy for transportation...
which is what Biden and Kerry and democrats want...
So, forget that!
Worst Great Reset ever. Squeezing me out of the driving game. That’s unfortunate. I live in the country. I wish we had millions of gallons of oil accessible in the continental United States that could make us energy dependent. I had a dream a couple of years ago that gas was under 2 bucks, we were energy independent, food prices were reasonable, but there was someone mean Tweeting. At least we don’t have that now.
DC is going to make Amish of all of us.
Yap, those tweets were more annoying than inflation in gas prices, food prices, rent, housing, air travel, etc /S
and if everyone turned inside out exploded, we’d all die.
“I’m gonna have to move to the country and get myself a horse and buggy for transportation...”
And you won’t have to worry about fertilizer, because the locomotion produces it itself.
I wonder if anyone really wants oil to go even that high (as opposed to $200 a barrel). That would very much have a reduction in driving and crater or damage the economy, ultimately hurting the producers.
I also wonder if enough Americans are paring back their driving over the coming long weekend there and that may likely adjust oil and gasoline inventories back to a certain number.
If we couldn’t survive that, we couldn’t survive a war for our existence.
The answer is to vote for politicians who are willing to support more drilling and fewer regulations.
long oil and still going up. One way to short Biden’s economy.
The US should be drilling and pumping until it hurts, convincing Canada to do the same,amd for the Euros to follow suit. Crashing oil prices is the easiest way to hurt Putin. Also cutting off trade to China helps, makes it so Putin has no where to sell his oil.
Won't happen. The 'watermellons' are in charge of every level of the US government. (Watermellon = green on the outside, red on the inside)
The increase in price and decrease in supply began with the first of this administration's executive orders -- to restrict the production of petroleum based energy in favor of electric "whatever."
Yeah the WTIC chart seems to be setting itself up for an upside explosion, so the technical side might just be there. But how do you square recession America with rising oil prices?
The sanctions war was another incredibly stupid idea from the Biden regime.
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