Russian integrated energy company Rosneft said crude oil prices might increase to as high as $120 per barrel by the middle of 2022 on a sluggish supply hike from OPEC+. Rosneft’s vice president for commerce and logistics, Otabek Karimov, said OPEC+ output is struggling to keep up with the demand growth, which resulted in a “very serious” energy deficit and boosted prices. The statement echoed that of Russia’s President Vladimir Putin, who said that oil prices at $100 are “quite possible.”
Brent crude futures have soared nearly 60% to more than $82 per barrel this year, and consuming nations such as the US, India, and Japan have called on OPEC+ to boost production faster. However, the group continues sticking to its plan to raise output only gradually. OPEC+ aims to increase production by 400,000 bpd each month, but some members such as Nigeria and Angola undershot their targets due to underinvestment.
