Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
oil growth forecast
Analytics

Is oil growth possible: forecast by WSJ analysts

15.11.2020
2 min read

What may be the reason for oil growth: analysts’ forecast

WSJ analysts believe that oil growth can be expected in the near future, the forecast is up to 150 dollars per barrel, but the cost is likely to be at the level of 100 dollars. The reason for this opinion from experts is the risk of raw materials shortage.
Due to the pandemic and reduced demand, oil and gas production had to be reduced, but the global economy is recovering and countries are increasing volumes. As a result, this could lead to a shortage of raw materials, which would raise the cost to $100 per barrel. In addition, financing for the oil industry is not yet fully established, and industrialists need investment. It should also be taken into account that having found themselves in a difficult situation, some companies had to declare bankruptcy. Therefore, the probability of value increase is quite real. According to analysts, by 2025 the price of oil may reach 150 dollars per barrel.
The majority of WSJ experts agree that the cost of raw materials should be at the level that manufacturers profit from production, while meeting the demand in the global market. However, due to the pandemic and its consequences, it has become difficult to make accurate forecasts. In addition, investors have been slow to invest in the industry for fear that disease outbreaks will now continuously adjust to demand. Another factor is the gradual shift to alternative sources of energy, which also affects oil production and demand.

oil growth forecast

Uncertainty in the market is reflected in the activities of banks and investors. They are in no hurry to invest in new and existing companies, which may lead to a supply shortage in the future.
The oil companies had to revise their financial policies in order to stay afloat. During the pandemic, they cut costs and optimized production operations. This year, the segment’s financing decreased by 32% to about $328 billion. These figures are the lowest in 10 years.
According to the information from analysts of JP Morgan, production of raw materials decreased by about 5 million barrels per day, which is 5% of the figures that were before the pandemic. To balance supply and demand, it is necessary to invest about $625 billion in the industry by 2030. This figure is quite impressive, so there is no doubt that in the next 2 years the price of oil will rise to 100 dollars per barrel.
However, a number of analysts believe that producers can operate successfully at the cost of raw materials within $50 per barrel. In addition, OPEC members will try to keep prices in the market, but it is difficult to say in what range.

Tags: Analytics
0
Previous Post How to fill in the investment declaration: detailed instructions Next Post Apple's profit was record-breaking in the fourth quarter of 2019

You Might Also Like

Russian currency market
Analytics
FINAM Analyst: how the Russian currency market reacts to the transition to the euro
04.01.2022
sharp rise
Analytics
Finam analyst: when to expect a sharp rise in the ruble
15.12.2021
Analysts named
Analytics
Analysts name investment options during the third pandemic wave
28.02.2022
Investments in biotechnology
Analytics
Investment in biotechnology reaches record highs: analysis of the Far Eastern High Technology Fund segment
29.05.2021
Chaslau Koniukh
Analytics
National Bank of China lowered yuan to dollar exchange rate to record lows: opinion of Bloomberg and Chaslau Koniukh.
08.07.2020
Weak dollar
Analytics
How dangerous a weak dollar is for the global economy: analysis by experts
13.07.2021

Recent Posts

  • 1Brookfield
    Brookfield and Closed Loop create the largest recycling company in the U.S.
    30.01.2023
  • 2Bybit
    Cryptocurrency exchange Bybit provided information about the volume of stored assets
    29.01.2023
  • 3Apple Search
    Apple Corporation is working on its own search engine, Apple Search
    28.01.2023
  • 4Tom Ford brand
    Estee Lauder made a deal to buy the fashion brand Tom Ford
    27.01.2023
  • 5Golden Visa
    The Golden Visa program has brought Portugal more than 6 billion euros during its existence
    26.01.2023

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Rise in gold prices: reasons for increased interest in the metal

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

Brookfield
Brookfield and Closed Loop create the largest recycling company in the U.S.
30.01.2023
Bybit
Cryptocurrency exchange Bybit provided information about the volume of stored assets
29.01.2023
Apple Search
Apple Corporation is working on its own search engine, Apple Search
28.01.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Rise in gold prices: reasons for increased interest in the metal
  • Will oil cost $100 per barrel: forecast
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics