Oil rally to power on as sanctions on Russia throttle market: Reuters poll

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A rally that has driven oil prices to their highest in almost a decade shows no signs of abating, as supplies from top exporter Russia are disrupted by sanctions after its invasion of Ukraine, a Reuters poll showed on Friday.

A survey of 35 economists and analysts forecast Brent crude would average around $91.15 a barrel this year, a jump from January's $79.16 consensus and the highest 2022 estimate in all the Reuters surveys.Register now for FREE unlimited access to Reuters.comAmong the most bullish predictions, JP Morgan expects $185 oil by the end of 2022 if disruption to Russian exports lasts that long, although its average for the year was $98.

"The risk premium is going through the roof," said Christian Reuter, NORD Landbk's senior director of sector strategy, with the Organization of the Petroleum Exporting Countries and allies also unable to adequately compensate the shortfall. Although the oil and gas trade is not directly targeted, customers have hesitated to buy Russian crude to avoid becoming entangled in sanctions."Prices could spike to $150 a barrel and even higher if the U.S. and allies take even more aggressive steps to reduce oil exports from Russia, as there is not sufficient spare capacity to offset a significant reduction in Russian exports," said John Paisie, president of Stratas Advisors.

 

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