A $120 barrel of brent oil may soon be a thing of the past. Indeed, US investment bank Goldman Sachs predicts that in the next 12 months the price of oil will increase even further. And this is due to insufficient mining, which will not be enough to meet the growing demand.
Analysts at Goldman Sachs bank predict that the price of a barrel of brent oil will climb to $135, $15 more than its current market price. And ten more than Goldman Sachs initially estimated.
Oil price limits
The price of brent oil should start climbing to the target level in the second half of this year and will hold near that border until at least the middle of next year. Only towards the end of 2023 should the price of black gold begin to normalise.
The decline of Russian oil
The expected decline in supply of Russian oil, which has been embargoed by the European Union, which will begin to take full effect at the turn of this year and next year, is to blame. The countries of Europe’s 27 will naturally look for a replacement and direct their demand to other countries. However, they will initially not be able to increase mining adequately due to capacity reasons, which will be reflected in the announced price increase.
