Saxo Bank expects energy prices to continue rising in 2022

Against the backdrop of increasing involvement in environmental, social, and corporate governance of an increasing amount of companies around the world, prices in energy markets will continue to rise in 2022, according to Saxo Bank. Realization of the goals set to reduce harmful emissions from production against the backdrop of increased demand for energy carriers will cause oil prices to rise to more than $100 per barrel in the second half of the year. High gas and oil prices are caused by an active recovery process after the crisis caused by the coronavirus spread, against the backdrop of a decline in investment in new oil and gas production everywhere. In order to ensure the transition to cleaner production, many countries have introduced bans on investment in projects related to drilling. All these factors, according to Saxo Bank experts, have increased green inflation. Gas prices in the first month of this year are more than four times their long-term averages. No less challenging is the situation with oil. The difficulty of underfunding in the oil industry will remain to be observed against the backdrop of uncertainty about demand for it and the active transformation of the energy system in the “green” direction.

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Arseny Kudrin

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