Oil will remain above $100 a barrel this year, according to Reuters.

According to a recent study by the agency, oil prices will remain above $100 a barrel this year. Reuters.

Brent crude oil will average $106.82 per barrel, the highest estimate for the year so far, while US WTI oil will average $102.82 per barrel.

According to the agency, this will happen due to the difficulties they experience in Europe and other regions to dissociate themselves from Russian supplies.

Recall that the export of Russian oil is about 7% of world supplies of crude oil.

“Oil will remain tied to supplies until the war Russia Ukraine continues to deny global supplies of much-needed barrels,” Robert Yauger, director of energy futures at Mizuho, ​​told Reuters.

After Western sanctions were imposed on Russia over its invasion of Ukraine, the US Energy Information Administration warned that global crude oil overcapacity in May 2022 was less than half the 2021 average.

Analysts predict growth this year requirement from about 2.3 to 5 million bpd this year, with a rise to 2.4 million by 2023 as the lack of supply offsets any concerns about consumption.

“Concerns about falling demand amid a stagflation trend and China’s COVID-19 lockdowns have curtailed optimism in the recent past, but as China eases restrictions, demand could pick up again in the third quarter,” he said. Suvro Sarkar agency, analyst at DBS Bank.

Sarkar added that many members OPECespecially some African Member States, are having difficulty meeting even current production quotas due to lack of investment.