Oil prices will go back to $100

The price of crude oil Brent could go up to $ 100 a barrel by 2022. This is stated in the report of the Bank of America.

Analysts of the organization have found six reasons for this development. Three reasons are connected with demand and three – with supply.

On the first point, they are pent-up demand for fuel after lockdowns, the prevalence of private automobile transportation over other modes of transportation, and remote working, which may evolve into a “work-from-car” format. This will increase the distance people travel.

Rising prices could also be affected by increased capital spending by companies to meet the goals of the Paris Climate Agreement. Investors have begun to influence the energy sector more and more, shifting its development in an environmental direction.

Recall that last week oil was trading at two-year highs above $74 a barrel. But it ended the week in decline.