According to the Vito Group, OPEC+ production policy will be the main factor affecting oil prices forecast in the coming months.
Oil prices forecast, The world largest independent oil trader said that the possibility of Iranian oil returning to the global market this year is very small, and the investment of USA shale oil producers is not enough to increase production rapidly.
“Pricing control is largely in OPEC+,” Mike Mueller, head of Victoria Group Asia, said at a webinar on Sunday. In the United States, “If you need extra oil, the amount of drilling is not fully supplied at all.”
As Brent crude oil climbed above $80 a barrel for the first time since 2018 last week, some traders called on OPEC+ to announce a faster production growth plan will affect oil prices forecast.
OPEC+ is gradually relaxing the production cuts that have begun since the coronavirus pandemic swept the energy market last year. They have previously said that they will increase daily production by 40 million barrels per month by mid-2022.
The shortage of natural gas in Europe has exacerbated the tension in the oil market, and enterprises have been forced to switch to crude oil to produce electricity.
Mike Mueller said that some OPEC+ member countries gave the impression that they were not worried that oil prices above $80 might suppress demand.
He believes that they “hope to make a lot of money before crude oil from Iran and the United States enters the market”.