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Oil Q1 2022 Fundamental Forecast: Crude to Avoid Bear Market as Supply Constraints Persist

December 30, 2021

Via: DailyFX
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The price of oil may face a bear market in the first quarter of 2022 as it falls nearly 20% from the 2021 high ($85.41). At the same time, expectations for stronger demand along with ongoing supply constraints may keep crude prices afloat as the Organization of Petroleum Exporting Countries (OPEC) plans to “adjust upward the monthly overall production by 0.4 mb/d for the month of January 2022.”

OPEC RETAINS UPBEAT OUTLOOK FOR WORLD OIL DEMAND

The upward trend in the price of oil seems to have unraveled as US President Joe Biden pledges to work with China “to address global energy supplies.” Meanwhile, the rapid spread of the Omicron variant may produce headwinds for crude as a growing number of countries reestablish travel as well as social resistrctions in response to rising COVID-19 cases.

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