We have some bad news for you if you’re waiting for rates at the gas pump to settle down before using your car regularly again: It doesn’t look like this fuel crisis is going away any time soon.
Experts from the IHS Markit consulting agency forecast that oil prices may skyrocket further in the second half of 2022 due to international tensions and reduced production capacity from oil-exporting countries.
Among the culprits for the world’s current lack of oil supply are the ongoing conflict between Ukraine and Russia (which has reduced oil production due to sanctions imposed by the international community) and tensions surrounding Iran’s nuclear program.
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IHS Markit also reports that OPEC+ oil production capacity may fall to just 1.8 million barrels per day from the current estimated daily capacity of 2.7 million barrels. Experts added that Saudi Arabia and the United Arab Emirates (UAE) may be producing later on.
Experts report that, due to these factors, Brent oil prices (the global benchmark for crude) could reach as high as $135 (P7,400) per barrel in H2 2022. Currently, Brent oil sits at $110 (P6,000).
“The global oil market that we knew no longer exists,” experts reportedly said.
Well, this doesn’t sound very promising, does it? If you’re having trouble coping with the fuel crisis, maybe our handy guide to improving your car’s fuel efficiency can help.