Oil to hit $100 on strong demand, #Russia-Ukraine crisis -strategists | Reuters

Oil to hit $100 on strong demand, Russia-Ukraine crisis -strategists | Reuters

Crude oil prices are likely to rise above $100 per barrel due to strong global demand, market strategists said this week, citing a potential war between Russia and Ukraine as one of their top concerns for markets in 2022.

Oil prices would gain if global supplies got disrupted, and as "substitution" demand from sky-rocketing natural gas prices in Europe and Asia picks up, along with re-openings from COVID-19 lockdowns, which will propel demand for aviation and other fuels, three strategists told the Reuters Global Markets Forum (GMF).

"The top geopolitical risk is Ukraine," said John Vail, chief global strategist at Nikko Asset Management in Tokyo. "The trend looks good in general for commodities."

The United States warned on Thursday that Russia has formulated several options as an excuse to invade Ukraine, including the potential use of a propaganda video showing a staged attack. Moscow dismissed the charge and has in the past says it is not planning an invasion.