Oil prices have soared in 2022, coming close to an all-time high of $147 in March following Russia’s invasion of Ukraine. Although prices cooled off over the past few weeks, Saudi Arabia is floating the idea of OPEC+ output cuts and the prospect of a drop in U.S. crude inventories, which might propel the prices.
On the other hand, according to the International Energy Agency (IEA), oil is receiving a boost from usage in power generation and gas-to-oil switching. In its August Oil Market Report, IEA raised its 2022 global demand growth estimates by 380 kb/d to 2.1 million b/d.
