Daily Times

Crude oil prices for two major benchmarks dipped over 2 percent last week after rallying 8pc in the preceding week.

According to details, Brent, the international benchmark for two-thirds of the world’s oil, shed 2.17 percent during the week to reach $73.52 from $75.15 a barrel. The low for the week reached $72.87 on Friday. The high for the week was on Monday near $74.39.

Similarly, the US West Texas Intermediate (WTI) reached $70.86 from $71.67, down by 1.13 percent during the week. The low for the week reached $69.37 on Wednesday. The high for the week was on Monday and Thursday near $72.97.

During the week, price for Opec Basket decreased 0.57 percent to $74.66 from $75.09, Arab Light price increased 0.68 percent to $75.72 from $75.21, while the price of Russian Sokol went up by 0.26 percent to $75.91 from $75.71 a barrel.

Oil prices have eroded between 50-60 percent of their post-Omicron emergence decline. Overall, the price action this week was down, up and back down again with the price settling below the middle of the trading range and the moving averages. Those dynamics tilted the bias more in the direction of the downside as the week came to a close, but buyers and sellers are still battling it out and would need a move below $69.37 or above $72.97 to determine the next major winner.

As 2021 comes to a close, energy companies and organisations begin looking at 2022 and start making plans based on supply and demand expectations. Three organisations that provide market information are the International Energy Agency (IEA), based in Paris and representing countries that are net importers of crude oil; the Energy Information Administration (EIA), based in Washington and the data-collection and forecasting arm of the Department of Energy; and the Organization of Petroleum Exporting Countries (OPEC), which is a cartel of 13 countries that produce and export crude oil around the world.

These organisations issued their forecasts recently, and the global economy will improve in 2022 by 4.2 percent, according to OPEC’s economic analysis. Even though all three organisations agree the global economy will continue to improve, the impact of the pandemic remains a significant concern. The EIA, however, forecasts Brent, which is traded on the international market, to average between $60 and $70 per barrel in 2022. West Texas Intermediate usually trades $2 to $4 less than Brent.