Oil prices could average $135 in 2022 if Russia-Ukraine war continues, MUFG Bank says – The National
- Date: 04-Apr-2022
- Source: The National
- Sector:Financial Services
- Country:Gulf
Oil prices could average $135 in 2022 if Russia-Ukraine war continues, MUFG Bank says – The National
Russia’s military aggression in Ukraine has introduced a risk premium in oil prices that is likely to remain embedded in markets for months, with average oil prices hitting $135 per barrel this year, MUFG Bank has said.
With little progress on the diplomatic front and Moscow facing the threat of more sanctions amid the protracting war, the price of Brent is expected to surge above $140 per barrel market in the second quarter of this year, Ehsan Khoman, director of emerging markets research for Europe, the Middle East and Africa at MUFG Bank, said in a research note on Monday.
Physical deliveries of Russian seaborne crude are set to collapse from the second quarter, which, combined with the simultaneous deficits of depleting inventories and thinning spare capacity, means oil prices will be materially higher in the near term.
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