Five Reasons To Believe That Oil Will Reach $150 In 2022

Written by Paulo Nogueira

Published on 06/06/2022 at 15:40

Updated on 06/06/2022 at 15:50

plataforma de petróleo da Rússia – Fonte: pixabay

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Co-Founder of the Investor Hub Talks About Expectations for the Oil Market

Curitiba, June 2022 – Ricardo Penha, co-founder of the Investor Hub, provides an analysis of the consequences of the Russian military invasion of Ukraine. According to him, this military action triggered a series of measures by the West against Russia in order to punish Putin, such as freezing its foreign reserves in dollars and euros, imposing sanctions on Russian companies and billionaires, as well as on oil. “This indeed hurts the Russian economy, which is expected to see its GDP fall by 15% in 2022; on the other hand, it has put tremendous pressure on oil prices,” he says.

According to Penha, the world has spent the last 10 years investing little in the oil and gas chain. “The ESG agenda (in Portuguese Environmental, Social and Governance) has gained global relevance and has discouraged companies and investors from looking at this old economy, which is deemed outdated and polluting. To make matters worse, Europe has realized the size of the mistake it made by delegating its energy sovereignty to a country of dubious trust,” he evaluates.

We Are Still Dependent on Russian Oil

The fact is the world still needs oil, and Russia is the second-largest producer globally. “When Europe and the United States announce that they will stop buying Russian oil, they end up shooting themselves in the foot, pushing the price of the commodity up and, especially, making the task of central banks to combat inflation even harder. No wonder that inflation in the U.S. and in the Eurozone is the highest it has been in 40 years,” explains the expert.

ARTICLE CONTINUES BELOW

Penha Highlights Five Reasons to Continue Investing in Commodities and Companies in the Sector:

U.S. and European oil, diesel, and gasoline inventories are at their lowest in 30 years. This period is marked by the reconstitution of inventories, which fall during the winter and rise in the summer. This trend is not occurring this year.
OPEC+ (the oil cartel) seems unable to significantly increase its production in the short term; indeed, some countries are struggling to produce their agreed quotas.
The capex of the world’s largest oil companies, the so-called Majors, such as Shell, Exxon Mobil, Chevron, and others, is the lowest in the past 20 years, with production expected to drop by 2% compared to 2021.
Even if there is a cease-fire in Ukraine, Europe and the U.S. are unlikely to reverse their embargo decisions against the Russians.
Additional production could come from Iraq and Venezuela, two complex countries for which there is no concrete data on their real production capabilities.

Source: Investor Hub

Five Reasons To Believe That Oil Will Reach $150 In 2022

Co-Founder of the Investor Hub Talks About Expectations for the Oil Market

We Are Still Dependent on Russian Oil

Penha Highlights Five Reasons to Continue Investing in Commodities and Companies in the Sector:

Scientists enter a narrow, flooded cave 500 meters deep and find giant dinosaur footprints on the ceiling measuring up to 1.25 meters, preserved in such a rare way that a new type of trace had to be created.

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In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

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More than 1,500 Chinese workers transformed an entire railway station in just one night and reduced a 7-hour journey to 90 minutes with a high-speed line of 200 km/h.

Cabbage, kale, and broccoli are used to mine thallium metal in toxic soils and provide raw materials for the high-tech industry.

New air-powered artificial muscles allow machines to lift up to 100 times their own weight with fluid movements.

New system that detects danger, decides the ideal route, and overcomes obstacles in heavy cargo transportation

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Five Reasons To Believe That Oil Will Reach $150 In 2022

Co-Founder of the Investor Hub Talks About Expectations for the Oil Market

We Are Still Dependent on Russian Oil

Penha Highlights Five Reasons to Continue Investing in Commodities and Companies in the Sector:

Scientists enter a narrow, flooded cave 500 meters deep and find giant dinosaur footprints on the ceiling measuring up to 1.25 meters, preserved in such a rare way that a new type of trace had to be created.

A giant half-ton ring fell in Kenya from space, and more than a year later, scientists still do not know where it came from.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

Why fighter pilots never return after ejecting: the seat launches the body at 600 km/h in 1 second, compresses the spine, reduces G tolerance, and leads to medical disqualification, not punishment.

With 1,000 buses sent abroad, the Brazilian manufacturer consolidates the strength of national technology and takes on a leading role in public transportation across all of Latin America.

More than 1,500 Chinese workers transformed an entire railway station in just one night and reduced a 7-hour journey to 90 minutes with a high-speed line of 200 km/h.

China has just discovered oil in rock layers that no one thought could be explored at the bottom of the South China Sea, and the field with over 100 million tons could change the balance of energy power in Asia.

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Petrobras announces a new discovery in the pre-salt layer of the Campos Basin in block C-M-477, 201 km off the coast of Rio and at a depth of 2,984 m, following indications from electrical profiles, gas, and samples collected during drilling.

Even before the first drilling on the Brazilian Equatorial Margin, a wave of migrants is pressuring Oiapoque, expanding precarious occupations and transforming the city of Amapá into the new epicenter of the oil rush in the Amazon.

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Cabbage, kale, and broccoli are used to mine thallium metal in toxic soils and provide raw materials for the high-tech industry.

New air-powered artificial muscles allow machines to lift up to 100 times their own weight with fluid movements.

New system that detects danger, decides the ideal route, and overcomes obstacles in heavy cargo transportation

Researchers develop a new advanced encryption system to protect video files against the future threat of quantum computing attacks.

While other powers face challenges in making rockets more accessible, China is betting on the Lijian-2 with reusable technology, standardized engines, and large-scale production to accelerate space missions.