Participants in the OPEC + deal, as well as countries in the Americas, will increase oil production next year, reports by Break News. And this will put pressure on prices.
According to experts of Capital Economics. According to their forecast, this year the volume of oil production in the world will reach 96 million b/d, which is 2 million b/d more than last year. Next year, production will return to the volume that was observed before the coronavirus crisis. As a result, the balance on the world market will become a surplus.
Capital Economics experts believe that oil prices will reach peak levels in the next quarter. For Brent oil, this will be the price of $75 per barrel, for WTI oil вЂ” $72 per barrel. After that, oil prices will start to fall.
By the end of 2022, the price of a barrel of Brent oil will drop to $60. And a barrel of WTI oil will fall to $57.
David Fyfe, the chief economist at Argus, said that the OPEC+ deal participants will most likely not decide on an additional increase in oil production this year.