Oil production is going to increase in the US but it will take several months to reach that 600,000 barrels a day increase on a year on year (YoY) basis, believes Andrew Lipow of Lipow Oil Associates.

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“If the Russia-Ukraine tension is resolved without a supply disruption, we are headed back to $80-90 per barrel but the higher prices are here to stay because of the supply side issue,” he said.

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“We would expect that we won’t see the oil prices staying at such highs. We would think that it will start to soften up again. One would expect it would have to decline and probably will be back towards $90 per barrel,” said David Lennox of Fat Prophets.

Oil price is rising because of the geopolitical tensions, Lennox said. He believes there are certainly enough headwinds to keep the oil prices from rallying any high from here.

Also Read: Commodities round-up: Brent rebounds above $100/bbl, gold near 18-month high

Lennox sees oil prices go down but isn’t exactly sure, how many barrels might come out of Iran if and when it is due. “We suspect that the Russia-Ukraine conflict would be long over before we can see any of the Iranian oil hit the market. So it is certainly going to keep a lid on rallies. USD 90 per barrel is where we are suggesting that we will see the oil price move back to,” he explained.

For the full interview, watch the accompanying video

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First Published:Feb 25, 2022 11:54 AM IST