Commodities Buzz: Global Energy Prices Projected To Be Much Higher In 2022 Than Previously Expected

12 Jan 2022 , 11:56 AM

World Bank noted in a latest update that Energy prices surged in the second half of 2021 and are currently projected to be much higher in 2022 than previously expected. Oil prices rose to an average of $69 per barrel in 2021?an increase of 67% over 2020 and $7 per barrel higher than previously expected as oil demand recovered, boosted by higher natural gas prices which encouraged the use of oil as a substitute. Despite a planned increase in production by the member countries of OPEC+, global oil output rebounded more slowly than expected owing to supply outages and production constraints, in addition to a muted response to higher prices by US shale oil production. Oil prices are expected to average $74 per barrel in 2022 before declining to $65 per barrel in 2023 as global production recovers.

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