Oil Prices Could Hit $100 as Demand Outstrips Supply, Analysts Say

Morgan Stanley and J.P. Morgan are both predicting that oil prices to rise as high as $90 by the end of 2022 due to low spare capacity and limited investments in the oil and gas sector.

Bozorgmehr Sharafedin, Reuters

Oil prices that rallied 50% in 2021 will power further ahead this year, analysts predict, saying a lack of production capacity and limited investment in the sector could lift crude above $100/bbl.

Though the Omicron coronavirus variant has pushed COVID-19 cases far above peaks hit last year, analysts say oil prices will be supported by the reluctance of many governments to restore the strict restrictions that hammered the global economy when the pandemic took hold in 2020.

Brent crude futures traded above $84 on Jan. 12, hitting two-month highs.

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