© Reuters. File photo: In this illustration taken on June 21, 2017, the Barclays logo can be seen in front of the displayed stock chart. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters)- Barclays (LON:) On Tuesday, it raised its oil price forecast for 2022 because it expects inventories to fall faster than expected and the supply response is cautious to offset the small surplus next year.
The bank raised its 2022 average price forecasts for West Texas Intermediate Crude Oil (WTI) and West Texas Intermediate Crude Oil (WTI) by $3 to $80 and $77 per barrel, respectively.
Oil prices fell on Tuesday due to rumors that the United States, Japan and India will release crude oil reserves to curb prices, although demand will be threatened with the outbreak of COVID-19 cases in Europe.
Barclays expects that, compared to the earlier 2-22 quarters, the smaller deficits in the 1-22 quarters will turn into surpluses more quickly in the 1-22 quarters, but indicated that the starting point for potential inventory increases next year is lower It should be enough to offset this.
“We believe that strategic oil reserves are not a sustainable source of supply, and the impact of this market intervention is only temporary,” the bank said in a report.
A source in the Biden administration who is familiar with the situation said that the United States is expected to announce a loan from its emergency reserves on Tuesday in an attempt to reduce energy prices.
Barclays stated that the continued surge in COVID-19 poses a major risk to its outlook because it may put pressure on demand, although OPEC+ may slow down or even suspend its declining supply restrictions in response to a substantial slowdown in demand .
Earlier this month, the Organization of Petroleum Exporting Countries and its allies (collectively referred to as OPEC+) agreed to stick to a plan to increase oil production by 400,000 barrels per day (bpd) from December.
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