Survey Shows Oil Prices Expected to Average $81 to $100 Over Next Year
A Bloomberg Intelligence survey of asset managers and energy market strategists found that oil prices are projected to average between $81 and $100 per barrel over the next 12 months. Respondents cited demand destruction and logistics adjustments as primary factors balancing the market.
thestreet.comOil prices are set to average between $81 and $100 per barrel over the next 12 months, according to a Bloomberg Intelligence survey released on Thursday. More than 40% of the 126 respondents, who are asset managers and energy market strategists, identified demand destruction as the single biggest driver of efforts to balance the market amid the current supply disruption.
Another 21% pointed to re-routing and adjustments to logistics as a key factor offsetting the loss of supply.
OPEC+ spare capacity and policy response was selected by 13% of participants as a factor in offsetting the supply disruption. Twelve percent of respondents said that nothing will materially offset the disruption. As Brent Crude prices are expected to average nearly $100 per barrel over the next year, most survey participants also believe that oil prices will price in a risk premium of $5-$15 per barrel for years to come.
Key Facts
Potential Impact
- 01
Higher average oil prices could increase costs for transportation and manufacturing sectors.
- 02
Energy companies may adjust production and investment plans based on sustained price levels.
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