- The price of oil is inching towards $100 barrel and may hit an all-time high of $150 per barrel anytime soon, according to experts
- John Driscoll of the JTD Energy Services said there is scenario of the price hitting $124 per barrel and spiral higher anytime soon
- This is propelled by the escalating tension between Russia and Ukraine which has piled pressure on the price of Brent crude
Oil prices are nearing $100 per barrel and there is no stopping the increase. In December 2021 and January 2022, international Brent crude jumped by almost $11 per barrel and it's been ascending ever since.
Brent crossing $100 per barrel is almost certain at this point, according to energy analysts but a growing number of pundits have forecasted that the commodity will surpass $125 per barrel or higher anytime soon.
According to CNBC, John Driscoll, the director of JTD Energy Services, there is a method where oil can vault past $120 per barrel.
Soaring oil price caused by Russia-Ukraine tension
Brent passed $95 a per barrel last week, being the highest in 2014 and stands at a 63 per cent rise year on year. It traded at $93.98 per barrel on Wednesday, February 8, 2022.
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The predicted increase in hinged on rising tension over Russia’s invasion of Ukraine and has helped to spike prices.
According to Driscoll, the market is steep that allows a premium to any prompt physical available oil.
OPEC members not meeting up
But it’s “not only the geopolitical tailwinds that we’re picking up, but the fundamentals,” Driscoll said.
There are shortfalls that exist in terms of OPEC+ and the proper OPEC and several member countries which are pumping oil below expected levels.
Meanwhile, the biting fuel scarcity in Nigeria got worse on Tuesday, February 15 as long queues of vehicles were prominent at many filling stations in Lagos, Abuja and several states.
The Nigeria National Petroleum Corporation (NNPC) said its has imported about one billion metric tons of the premium motor spirit to replace the adulterated fuel brought into the country penultimate week.
Oil prices will surge to $100 this year, says Goldman Sachs
Legit.ng has reported that investment banking company, Goldman Sachs has said the price of oil may hit $100 (N41,500) per barrel this year and may continue to rise.
The CNN noted that the bank, on a Monday evening, reports to clients, the bank back up strong calls and cited strong fundamentals in the oil industry, shocking large supply shortage and declining firepower from the Organisation of Exporting Countries (OPEC) and its partners.
By August, Goldman anticipates oil stocks in big economies to sink to their lowest level since 2000.