Crude oil prices rallied again on Friday, following an International Energy Agency (IEA) report of a tight oil market. Brent crude futures rose $1.01, or 1.1%, to $92.42 per barrel, while the United States West Texas Intermediate crude gained $1.15, or 1.3%, to $91.03 per barrel. The IEA also added that the OPEC+ alliance produced 900,000 barrels per day (bpd) below target in January.
According to JPMorgan Chase & Co. (JPM), oil prices could soar to $120 per barrel if Russia’s crude exports are derailed amid tensions with Ukraine. JPM also forecasted that if Russian oil exports are cut in half, Brent oil prices would likely surge to $150 per barrel. In addition, OPEC+ has raised its annual oil demand estimate for 2022 to 100.8 million bpd, up from 100.79 million bpd in last month’s report, due to solid economic growth and the easing COVID-19 restrictions.
