Potential $100 per barrel oil price is unlikely to be sustainable: Jadwa

Jadwa kept their expectation for 2022 Brent oil at $65

  
Image used for illustrative purpose. A sculpture made of discarded metal oil barrels is seen at the Instituto Mexicano del Petroleo (Mexican Institute of Petroleum) metro station in Mexico City, February 15, 2015. Saudi Arabia's oil exports have risen in February in response to stronger demand from customers. As OPEC's top producer battles for market share Reuters photographers around the globe have been photographing oil barrels to document how they are utilised once the fuel has been used. REUTERS/Tomas Bravo

Image used for illustrative purpose. A sculpture made of discarded metal oil barrels is seen at the Instituto Mexicano del Petroleo (Mexican Institute of Petroleum) metro station in Mexico City, February 15, 2015. Saudi Arabia's oil exports have risen in February in response to stronger demand from customers. As OPEC's top producer battles for market share Reuters photographers around the globe have been photographing oil barrels to document how they are utilised once the fuel has been used. REUTERS/Tomas Bravo

REUTERS/Tomas Bravo
Riyadh: Oil prices could surge to $100 per barrel but only for a brief period, according to Saudi-based capital market company Jadwa.

The firm’s quarterly oil market report said the rise was conditional on an acceleration in gas-to-liquid substitution during the winter months, combined with any unforeseen outages in oil production.

However, this soaring level of prices is unlikely to persist, if it does indeed hit $100, Jadwa said.

The high level of prices would possibly drive OPEC+ to increase production over the current stated levels to stabilize the markets. Moreover, OPEC expects a decrease in global oil demand in the first quarter of 2022. Both of these developments will diminish the possibility of oil prices remaining at $100 in the short term, Jadwa explained.

Jadwa kept their expectation for 2022 Brent oil at $65. Meanwhile, they stated that there is an increasing risk on their full-year 2021 Brent oil forecast of $67.

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