Oil Prices To Reach $100 Per Barrel In 2022 - Iraqi Oil Minister

Oil prices will likely rise to $100 per barrel in the first half of 2022, Iraqi Oil Minister Ihsan Abdul-Jabbar Ismail said on Wednesday

BAGHDAD (UrduPoint News / Sputnik - 20th October, 2021) Oil prices will likely rise to $100 per barrel in the first half of 2022, Iraqi Oil Minister Ihsan Abdul-Jabbar Ismail said on Wednesday.

On Wednesday, December Brent crude futures traded at $84.1 per barrel, while WTI futures settled around $81.5 a barrel.

"The price of a barrel of crude oil will reach $100 by the first quarter of the next year due to the decline in global and US strategic reserves, as well as the recovery of the global economy after the COVID-19 pandemic," the minister said at a working meeting in Baghdad.

He also noted that Iraqi government chose the oil price benchmark of $55-60 per barrel for the country's 2022 budget.

"This will contribute to great positive changes in the national economy and overcoming the government deficit," Abdul-Jabbar added.

In October, the International Energy Agency raised its forecasts for world oil demand in 2021-2022, noting that the increase in gas prices triggered a switch to oil. Reportedly, this can raise oil demand by 0.5 million barrels per day compared to "normal" conditions.

According to the US Department of Energy, the average price of North Sea Brent oil will amount to $71.38 in 2021 and $71.91 in 2022.