Brent crude price to rise slightly despite fluctuations: TexPro

The price of brent crude increased from $55.12 per barrel in January to $74.27 per barrel in July, recording a growth of 34.74 per cent, according to Fibre2Fashion’s market analysis tool TexPro.

In June and July 2021, OPEC+ eased output cuts and producers other than OPEC boosted their activities of production after maintenance. Most of the OPEC+ members have increased the output temporarily from August till the easing of supply cuts by other producers. UAE was also in the favour of increasing the production.

Hence, the brent crude price dropped by 4.24 per cent from $74.27 per barrel in July 2021 to $71.12 per barrel in August 2021.

After the drop in August 2021, crude price is expected to rise again in the coming months of 2021 and Q1 2022 due to a surge in demand over supply by non-OPEC countries. It may reach $74.23 per barrel by March 2022, rising slightly by 4.37 per cent over the price in August 2021.

The upward momentum of the price may be hampered due to the tentative increase in output by OPEC+ countries, uncertainty in the global economy due to COVID-19 delta variant and increasing output of non-OPEC countries.

Fibre2Fashion News Desk (KD)