The prices of Crude oil to set to hit 60 dollars on the global market.
Energy consultant, Dr Yussif Sulemana has made a prediction that the global oil prices is expected to hit $60 per barrel in the first quarter of this year.
Currently, Crude Oil stands at $55.78 per barrel which is increasing a little since the start of the year.
In an interview with Citi Business News, Dr. Sulemana gave a detailed explanation of the causes of a potential increase in the price of Crude oil.
“The OPEC plus member, Russia and OPEC de facto leader, Saudi Arabia seemly are now in agreement and this agreement started in the first quarter of 2020 that they are going to reduce up to 9.7 million barrels taken out from the global basket and that was significant. So that amount is still in place. OPEC reduction holding, vaccines in the horizon and the vibrancy of the Asian economies are the three things accountable for these bullish sentiments in the oil prices,” he said.
He said” The projections are that, if this holds, oil price is going to gravitate to the mid-50s, that is 55 and if it still holds that there is good understanding among the OPEC plus members, Saudi Arabia, Russia, and oil price moves up a little bit, we could have it hitting 60.”
He also indicated that some factors that might hold back the likely increase of the price of Crude Oil. “The other component is US President Biden, likely to go to green energy. So, going to green energy will have some impact on the world of Hydrocarbons. So, if the investment is shifted to the world of green energy, which is likely to happen again, because this kind of energy movement is almost like leadership requirement. We just need leadership proclamation. So, when Biden whole-heartedly says that he’s going to support green energy, the investment bankers are going to invest in it. Just like President Trump whole-heartedly supported fracking that resulted in investment bankers embracing it and investing so much into it. That allowed the USA to become crude oil independently,” he said.
The increase of oil prices on the global market reflected locally with petrol currently selling around GHS 5.1 per litre, an increase from the about GHS4.8 per litre late last year.
Due to the COVID-19 pandemic, Brent Crude fell to $22.58 a barrel in March 2020, its lowest level since November 2002.