Mid-Week Review – January 5, 2022

Oil holds near $80 after OPEC+ output hike decision

Oil prices held near $80 a barrel on Wednesday after OPEC+ producers stuck to an agreed output target rise for February and investors assessed the impact of a spike in COVID-19 cases caused by the Omicron variant. Brent crude futures were up 37 cents, or 0.46%, to $80.37 a barrel by 1210 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 29 cents, or 0.38%, to $77.28. Click Here to read more from Reuters.

Crude oil prices increased in 2021 as global crude oil demand outpaced supply

Crude oil prices increased in 2021 as increasing COVID-19 vaccination rates, loosening pandemic-related restrictions, and a growing economy resulted in global petroleum demand rising faster than petroleum supply. The spot price of Brent crude oil, a global benchmark, started the year at $50 per barrel (b) and increased to a high of $86/b in late October before declining in the final weeks of the year. Click Here to read more from EIA.

Burning Questions: Will oil prices soar or crash and burn in 2022?

Forecasting oil prices is a tough business at the best of times, but especially so when the COVID-19 pandemic continues to put consumer plans on hold, government policies are slowly dismantling the current global energy system and businesses are under a fog of uncertainty. Click Here to read more from Financial Post.

How Iran Could Trigger The Next 10 Percent Drop In Oil Prices

Given ongoing high and steady sales of crude oil to China and other Asian countries and the likelihood of a new iteration of the Joint Comprehensive Plan of Action (JCPOA) being agreed with the U.S. at some point this year, Iran announced plans last week to boost oil production from its supergiant South Azadegan oil field to at least 320,000 barrels per day (bpd) by the middle of 2023, from the current 140,000 bpd. Click Here to read more from Oil Price.