According to the energy minister of Oman, oil prices could drop down to the $70 range after the winter season. The reason for this drop is that the current price levels of oil are unsustainable. Considering how Oman is a member of OPEC+, a comment like this holds a lot of weight.
This information was shared by the minister at the UN Climate Change conference being held in Egypt. He said that prices will continue to move down until they reach a comfortable position. Minister Aufi said that the ideal price range for oil is somewhere around $70.
In fact, Oman is already prepared for the Oil prices to reach $55 per barrel however it was highly unlikely that oil could reach that low.
But if we look at other industry players, it seems that the views shared by Oman are a lot different. For example, UBS has shared a warning that crude oil can touch the price of $125 per barrel if Russia fights back against the US attempts to cap Russian oil prices.
As for the month ahead, the energy minister believed that the upcoming meeting of OPEC will play a key role in determining the oil prices. Aufi said that OPEC+ will react to the supply shortages in the European region. And if the EU bans Russian oil and starts to support the US price cap on Russian oil, it will force Russia to take its oil out of the spot market. As a result, the oil prices could jump even higher and also take the inflation with it!
Overall, this year has been a rollercoaster ride for the Crude oil with so much happening around us... From the sanctions on Russian oil to supply shortages to the Russian invasion of Ukraine, there's a lot that is affecting the oil prices.