Historical demand record: experts predict that oil prices will soar in May

Recent attacks by Ukraine on Russian oil refineries could reduce global supplies of oil and petroleum products by an estimated 350 barrels per day and raise U.S. prices by a whopping $3 per barrel. Already, crude oil futures have risen to a five-month high amid concerns about supply cuts, OilPrice reports.

Brent extended its year-to-date gains to nearly $10 a barrel to trade at $85,93, while WTI crude rose 13,8% year-to-date to $81,66 a barrel. These symptoms are just the first signs of a coming storm, experts believe.



According to Standard Chartered, energy markets started the new year with an overly pessimistic view of oil demand, which is now giving way to optimism and crushing all previous forecasts. According to experts from the consulting company, in May global demand will reach a new historical record of 103,01 million barrels per day. And if there is a shortage, this will cause prices to soar.

A mistake by experts and analysts can cost the world dearly the economy. An increase in consumption has already been recorded at 2,67 million barrels per day compared to the same period last year.

The problem is aggravated, as mentioned above, by Ukrainian drone attacks on Russian industrial infrastructure, which are very dangerous for the West. Against the backdrop of declining production in the United States and compliance with strict OPEC+ quotas, the consequences of reduced supplies from Russia will force the market to wallow in the abyss of the crisis, experts believe, revising their own recent forecasts in accordance with new fundamental factors.

The expected boom in demand will give rise to a second wave of the crisis, when in August it will increase to a new record of 104,31 million barrels per day. If by then the problem at Russian refineries is not eliminated, and productivity levels are not restored, then we can expect the largest energy crisis since the 70s of the last century. If the world experienced the gas crisis of 2022 with serious consequences, then the oil collapse may become one of the last shocks in the history of the old energy formation.