Oil by $100: at “escalating hysteria around Ukraine”

Alexey Gromov, Principal Director on Energy Studies at the Institute for Energy and Finance, commented to Gazeta.ru regarding the prospects for further world oil prices growth in 2022.

At a negative scenario, the bar will overcome the critical threshold of $100, Alexey Gromov said in an interview with Gazeta.Ru.

“The price level that we are currently seeing in the market is an highly extreme level. Forcing hysteria around Ukraine will push oil to $100 per barrel in the near future. This is pure geopolitics,” Gromov stressed.

He also disagreed with the opinion of Citigroup analyst Ed Morse that oil prices would fall to $65 per barrel by the end of 2022. According to Gromov, the cost of crude oil will inevitably adjust in the coming months, but this will not happen so radically.

“$60-65 per barrel by the end of the year is too optimistic a forecast. In my opinion, the average annual cost of crude oil is unlikely to fall below $70, while the upper limit will be $75 per barrel of Brent,” Gromov suggested.