Oil production to increase in 2022

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According to oil commodity analysts, this year we will see strong efforts by the United States (US) to regain control of the global oil trade. In particular, these forecasts are based on the fact that the Biden administration intends to keep oil prices at a tolerable level in order to fight inflation, with the aim of significantly increasing its production of crude oil. These estimates indicate an increase of about 900,000 barrels per day, with the price of oil being in the range of $65 to $85 per barrel in 2022.

On 4 January 2022, at 7:12 am CET, the price of West Texas Intermediate (WTI) fluctuated on the New York Mercantile Exchange (NYMEX) commodity market at US$ 76.09 per barrel with the current daily strengthening of +0.01%. According to analysts, a gradual decline in the price of WTI oil can be expected during today’s trading day of 4 January and for the rest of this week. According to technical analysis data published by economic correspondents, since the beginning of 2022, i.e. in practically less than two trading days, the price of light US oil has been showing an increase of +1.15%. In an annual comparison, according to these data, the price of WTI oil shows an increase of +62.87% over the last 52 weeks. In this context, economic strategists say that continued growth in oil prices would further increase the already very high inflation globally, and even the world’s strong economies would be pushed into a premature recession with the possibility of a global economic crisis of unprecedented proportions.

As already mentioned the US wants to regain control of the global oil market, notwithstanding the significant relationship between the US and Saudi Arabia, which has a decisive influence on the part of the cartel of oil exporting countries, namely the Organization of the Petroleum Exporting Countries (OPEC) and the Russian Federation, an important player in OPEC+. Moreover, in recent weeks relations between the US and the Russia have been severely strained, and much of this conflict, including the eastern Ukrainian conflict with Russia, is affecting global trade relations of oil and gas supplies, along with differing views on the global energy crisis in the western and central parts of Europe. Currently, the negotiations of both the American and Russian administrations will continue after the video call on 7 December 2021. The presidents of the USA and the Russian Federation are to continue negotiations on 10 January 2022.

These negotiations should bring, in particular, a response to Ukraine’s participation in NATO, which the Russian Federation strongly rejects and calls for guarantees that NATO’s pact will not be extended eastwards towards the Russian border. Moscow has “said repeatedly we are no longer able to put up with the situation unfolding in the direct vicinity of our border, we cannot put up with the NATO enlargement,” added the Russian deputy foreign minister, Sergei Ryabkov.

The European energy markets, and especially the countries of the European Union, are experiencing a sharp rise in electricity, gas and oil prices. On 4 January at 7:44 am CET the European counterpart of WTI oil, namely the North Sea Brent crude, traded on the Intercontinental Exchange Europe (ICE) commodity market at $79.10 per barrel with the current daily growth of +0.15%. According to analysts, Brent oil is expected to continue rising.

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