Will oil price jump to $100 a barrel?

The oil price has been on the rise for seven weeks and the end of the rise does not appear to be in sight. This week the $90 per barrel mark was passed. The bill at the pump is also rising rapidly now that prices have risen to record levels. The high oil price, in addition to the gas price, is one of the main causes of the high inflation in the Netherlands and the eurozone. Although the oil cartel Opec+ has been intending to increase production by 400.000 barrels per day for some time, it has not yet been possible to achieve this target for various reasons.

There may be a hidden agenda behind this, some analysts suggest. In the sense that producing countries benefit from the high prices. The impending war between Russia and Ukraine also hangs like a dark cloud over the black gold market.

Opec+ maintains target
Opec+ decided this week to maintain the additional production of 400.000 barrels per day, although this target has not yet been achieved. The United States would like to pump more oil to slow high inflation. Other countries within the cartel are less inclined to do so. According to the International Energy Agency, Saudi Arabia and the United Arab Emirates have the most spare capacity to produce more, but these Gulf states are reluctant to do so. Russia and Nigeria are at their maximum in terms of production.

$100 per barrel is rapidly approaching 
Now that the corona measures are being eased or even abolished in many countries, it is likely that the demand for oil will increase. This, in combination with the Opec+ decision and the tension between Russia and Ukraine, means that the price is probably not yet at the top. The rising prices also motivate investors and speculators to get in and ride on the price rally. Passing $100 per barrel therefore seems to be a realistic scenario. This does not break any records yet. However, we have to go back to 2014 when this price was on the boards.