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Experts warn that the price of oil could double to $250 a barrel

Experts warn that the price of oil could double to $250 a barrel

According to experts, oil prices could more than double to reach $250 a barrel by 2022, due to the disruption that the Russian war is causing to global energy markets.

In a report to the Financial Times, two experts predicted that the market would be affected by the supply shock caused by Russia’s war in Ukraine.

“We’re not going to do normal business again for a few months,” explains Pierre Andorand, head of an energy hedge fund specializing in Publishing. The expert also adds that he expects oil to reach $250 a barrel this year, as Europe loses Russian supplies “forever”.

Doug King, head of the Merchant Commodity Fund, expects the resource to rise to a range of $200 to $250 a barrel in 2022. ‚ÄúThis is not temporary. It will be a crude supply shock,” he told the Financial Times.

Since the start of the invasion of Ukraine, oil prices have risen sharply, with Russia being one of the world’s largest resource suppliers and producing about 10% of the oil the world uses daily.

In early March, US President Joe Biden announced a ban on Russian oil and gas imports into the United States, in response to the Russian invasion of Ukraine.

Biden said in a speech at the White House that this “means that Russian oil will not be accepted in American ports.”

However, the European Union continues to receive Russian gas, since there are countries in the region that are particularly dependent on this resource, such as Germany, which is already trying to quickly reduce this dependence through other suppliers. The NATO summit that will resume today may lead to new energy sanctions.

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At the moment, Brent crude is down 1.4% to $119.94 a barrel, while West Texas Intermediate (WTI) is down 1.7% to $112.97 a barrel.