Oil prices may continue to fall and could be at US$75.00

13 Sep 2022

Oil prices (Brent) have been "falling and falling" since the start of the fall from a high of 127.00 in mid-June this year. Quotes are currently around 89.55, approaching a low of around 75.00 in early 2022. The OANDA Brent candlestick below shows that at the end of February this year, when the war between Russia and Ukraine started, it was around 93.50. As of 08 September, 11.50 am SGT time, it was around 89.90, which has wiped out all the gains since the "Russia-Ukraine war". Since the outbreak of COVID-19 at the end of 2019, in mid-April 2020, Brent oil prices fell to an all-time low of around US$19 a barrel before rising to a high of around US$135.00 this year. Brent oil prices have been around US$60-US$80 a barrel since 2015, and now, even if oil returns to US$75 per barrel, it’s back around the midpoint of the past seven years. Ed Morse, the Global Head of Commodities Research at Citigroup, said in a recent (June 2022) speech, "Demand for oil and refined products is falling as the economy starts bracing for a recession, and the fair value of Brent futures is in the US$70 range ".