Russian President: Oil price to 100 USD/barrel is

Russian President: Oil prices to 100 USD/barrel is ‘possible’

Russian President Vladimir Putin said that it is “very likely” that the price of WTI crude oil will reach $ 100 per barrel due to increasing global energy demand.

Russian President Vladimir Putin. Photo: AFP

Answering a question from CNBC about the possibility that the US WTI oil price can reach 100 USD/barrel, President Putin said that “it can happen”.

Also during the discussion at the annual forum Russian Energy Week held on October 13 in Moscow, the Kremlin boss further emphasized that Russia and its allies in the alliance Organization of the Petroleum Exporting Countries (OPEC) and its partners (referred to as OPEC+) want market oil works stably without any price shock.

“As for Russia and our partners and the OPEC+ alliance, I would say that we are doing everything we can to ensure a stable oil market,” Putin said.

The Russian President added: “We’re trying not to let any peaking price shocks happen. We certainly don’t want to see that – it’s not in our favor.”

Previously, OPEC + on October 4 agreed to continue implementing the agreement to increase production by 400,000 barrels / day for the month at least until 2022, despite the world’s oil importing countries calling for this alliance. increasing supply to the market, as well as the energy crisis in Europe and Asia, make these two continents tend to switch energy from gas to oil because the price of natural gas is at a record high. green.

Immediately after the decision of OPEC +, the price of US crude oil and the price of Brent oil broke the peak, respectively. In the session of October 5, the US WTI oil price at one point increased by more than 2% to $ 79.48 / barrel, the highest level in nearly 7 years. Similarly, the price of Brent oil also pierced the peak of the last 3 years when it reached 83.13 USD/barrel.

Many analysts and investment banks around the world also agree that oil prices could reach $ 100 if the winter weather this year is colder. Soaring natural gas prices are forcing many businesses in Europe and Asia to switch to oil products instead of gas. Therefore, the demand for crude oil also increases.

Bank of America predicts that skyrocketing natural gas prices, cold winter weather, and the reopening of international routes are three factors that could push oil prices to $100 a barrel and trigger a crisis. the next economic crisis. Trafigura, one of the world’s largest independent oil traders, predicts that a recovery in global oil demand could push oil prices to $100 a barrel by the end of 2022, despite challenges posed by Covid-19.

Meanwhile, according to the assessment of the energy consulting firm Opportune LLP, the US economy is moving to the threshold of hyperinflation due to the pandemic. Opportune LLP experts explain that the level of quantitative easing (QE) that used to take 5 years to achieve, has now doubled in less than a year. They think that with such rapid money supply expansion, they are now just waiting for the answer when hyperinflation will come.

The above prediction model of Opportune LLP experts is based on the scenario where the WTI oil price is at $90/barrel, about 16% higher than the current oil price. But with the insatiable spending pattern of the US government as in the past time, Opportune LLP experts believe that the US dollar will be strongly devalued, pushing the WTI oil price to 180 USD/barrel by the end of 2022.