NEW YORK, 20 October 2021 / PRNewswire / – NYPPEX, one of the world’s leading providers of private equity secondary liquidity, today announced that it expects Brent oil to exceed $ 100/ barrel in 2022.
NYPPEX estimates that the natural resources sector is at the start of a secular 10-year trend characterized by higher prices for commodities driven by persistent imbalances between supply and demand.
Oil Price Forecast 2021-2050
US Energy Information Administration (“EIA”) plans that Brent oil will achieve $ 134/ barrel by 2040, as cheap oil sources will have been depleted, making it more expensive to extract oil.
By 2050, EIA projects will reach Brent oil $ 185/barrel.
In Europe, natural gas prices have increased by more than 300% in less than a year, from about $ 1.75 in May 2020 To $ 5.35 in February 2021.
NYPPEX believes it is important to note that future oil prices will greatly depend on innovations in energy, government policies, transportation and other industry trends as companies strive to become less dependent on fossil fuels.
Factors Determining Oil Prices Today
NYPPEX believes that in the years leading up to COVID, oil prices had a relatively predictable seasonal swing. In the spring, oil prices generally rose due to expectations of greater driving during the summer vacation. Once demand peaked, prices fell in the fall and winter.
NOTYPPEX believes than today, oil prices are more volatile and influenced by the following factors:
- Declining oil supply in the United States
NYPPEX believes that COVID, natural events, and government policies have adversely affected the United States’ oil supply. For example, the United States experienced a drop in oil production following Hurricane Ida in September 2021 which forced the closure of more than 9 American refineries.
- OPEC oil supply drop
In 2020, the Organization of the Petroleum Exporting Countries (“OPEC”) reduced its oil production due to declining demand during the COVID pandemic. OPEC has gradually increased its oil production until 2021.
- Asian and European countries increase their oil purchases
NYPPEX believes that Asian countries generally relied on coal to generate electricity. However, recent coal shortages have prompted some Asian countries to dramatically increase their purchases of natural gas and oil.
In China, Power shortages caused by high coal prices have led local authorities to reduce the opening hours of some factories, affecting semiconductor production and other key exports.
At Friday, October 15, 2021, Brent, the world benchmark, in the lead $ 85/ barrel, its highest level in 3 years.
- Declining global oil stocks
NYPPEX believes that due to the above factors, more countries are forced to draw on their oil reserves.
NYPPEX believes that given current trends in the natural resources sector, perhaps now is the time for hedge fund investors to assess their portfolio allocations to renewables, metals and mining, infrastructure, real assets , growth and energy.
About NYPPEX Holdings
NYPPEX Holdings operates a global private market that provides price data and the ability for qualified investors to access secondary liquidity in alternative investment funds in a fair and ethical manner. Its clients include alternative investment funds, financial institutions, endowments, foundations, institutional investors, family offices, private clients and their respective advisors around the world.
Since 2004, the NYPPEX QMS ™ was previously recognized by the US Internal Revenue Service as a Qualified Matching Service for Private Partnerships through a Private Letter Ruling under Internal Revenue Code §1.7704.
In 2014, the NYPPEX (Shanghai) Investment Consulting Co. Ltd. was among the first foreign financial companies approved as members of the Shanghai Free Trade Zone (FTZ), along with Oaktree Capital, Citadel and Man Group. Among its features, the Shanghai Free Zone allows unrestricted yuan convertibility and currency exchange, as well as a 10-year tax-free period for businesses in the region.
Its private securities are offered privately to qualified investors through NYPPEX, LLC and only in jurisdictions were allowed. NYPPEX is regulated in the United States by the SEC and FINRA. FINRA, SPIC member.
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SOURCE NYPPEX Private Markets