Oil prices expected to stay above $100 per barrel

Oil prices are expected to stay above $100 a barrel this year as Europe and other regions struggle to wean themselves off Russian supply.

A survey of 34 economists and analysts forecasts Brent crude would average $106.82 a barrel in 2022, the highest prediction for the year so far, versus a $101.89 consensus in May.

Brent has averaged about $105 a barrel this year, and is now trading around $116 a barrel, amid supply concerns.

Global surplus crude production capacity in May 2022 was less than half its 2021 average, the U.S. Energy Information Administration said last week, as Western sanctions on Russia over its invasion of Ukraine took hold. Russian exports make up about 7% of global supply.

Analysts projected demand growth of about 2.3 to 5 million barrels per day (bpd) this year, and 2-2.4 million bpd in 2023, as tight supply overshadows demand concerns.

Reuters/Hauwa Abu