Today wraps up a turbulent week for financial markets as Russia’s attack on Ukraine continues. While other nations evaluate strategic courses of action and impose sanctions, the theme of oil prices rising continues to garner news coverage. As oil prices have spiked, oil stocks have largely risen across the board. And despite President Joe Biden’s promise that he remains committed to helping reduce gas prices, the opposite outcome seems to be unfolding. As of this afternoon, gas prices have reached $3.59 per gallon, an increase of 33 cents in 2022. This comes as crude oil tops $105 per barrel.
Oil prices were already rising prior to Russia invading Ukraine, so the current crisis has worsened an already difficult situation. Geopolitical uncertainty is also fueling this problem. There has been plenty of speculation as to whether or not Biden will move to sanction Russian crude oil. Even he doesn’t, investors want to know what the future holds in terms of oil price predictions given ongoing supply-demand concerns.
Let’s take an in-depth look at what some experts are saying.
Oil Price Predictions
- Most experts are predicting that oil prices will keep rising throughout 2022. David Blackmon is a Forbes contributor who focuses on the energy sector. As he noted yesterday, crude oil prices crossed the $100 threshold way earlier than expected. Blackmon added that prices will likely continue to rise, regardless of how the Russia-Ukraine conflict develops. Why? He cited factors such as constrained capital (due to ESG priorities) and supply chain imbalances.
- Other oil price predictions are even more bullish. Edward Moya of trading platform OANDA sees prices rising as high as $120 per barrel within the next few weeks. “The oil market still remains very tight and will likely see wild swings as energy traders await outcomes for both Russian and Iranian crude supplies.”
- Louise Dickson, senior oil market analyst at Rystad Energy, has issued a similar take. She sees oil prices hitting $130 per barrel — or higher — by June 2022.
- Two days ago, analysts from JPMorgan Chase issued a note on oil price predictions. Although their take is not as bullish, the team sees oil prices averaging $110 per barrel in the second quarter of 2022. By the end of the year, analysts see crude oil at $90 per barrel.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.