Global oil prices to stay within US$71 and US$79 bracket in 2022 – BoG report

COVID-19 resurgence disrupts oil market

Oil selling above US$90 on global market

Oil prices to be subjected to uncertainties in 2022 – Report

Oil prices on the global market are projected to stay within the US$71 and US$79 per barrel bracket for most of 2022.

This is according to a January 2022 Monetary Policy Report released by the Bank of Ghana.

The report noted that due to impact of the coronavirus pandemic on economies, oil demand and supply chain disruptions on the global oil market, oil prices will be subjected to some uncertainties in 2022.

“The global oil market will be subject to significant uncertainties in 2022, notably due to the resurgence of the COVID-19 pandemic and its effects on economic growth, oil demand, and the production decisions of OPEC+."

“Restrictions imposed to mitigate the spread of COVID-19 before the emergence of the Omicron variant raises the possibility of a decline in global oil consumption, leading to downward pressures on oil prices. These factors, among others, could keep oil prices volatile between US$71 and $79 per barrel during the year,” the BoG report noted.

Meanwhile, on the global market, oil is currently selling above US$90 with consumers grappling to pay more for the commodity.