Tuesday 28 September 2021

Barclays raises 2022 oil price view on likely supply deficit | Reuters

Barclays raises 2022 oil price view on likely supply deficit | Reuters

Barclays on Tuesday raised its 2022 oil price forecasts reasoning that a continued recovery in demand could widen a 'persistent' supply shortfall.

The bank raised its 2022 Brent crude price forecast by $9 to $77 per barrel driven in part by "reduced confidence" for a revival of the U.S.-Iran nuclear deal.

Expectations of tight supply, coupled with surging coal and gas prices, pushed oil prices higher for a sixth straight session on Tuesday, with Brent crude futures topping $80 a barrel while U.S. crude rose to around $76.

"OPEC+ tapering would not plug the oil supply gap through at least Q1 2022 as demand recovery is likely to continue to outpace this, due partly to limited capacity of some producers in the group to ramp up output," Barclays said in a note.

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