3 may
The World Bank warns that the cost of raw materials will remain at a high level until 2024 due to disruptions in global supply chains and an unstable geopolitical background, reports the publication "SK News".
According to experts, the average price of Brent in 2022 may be $ 100 per barrel. This means that by the end of the year, oil quotes may rise much higher than current levels, since at the moment the average is only 91.4 dollars per barrel. In addition, the bank's analysts expect prices for other energy resources, as well as food, to rise by 2024. In addition to the current aggravation of the geopolitical situation and the consequences of the COVID-19 pandemic in the form of disruptions in supply chains, other factors contribute to the preservation of high oil prices.
Thus, previously imposed sanctions against Russia, Iran, Venezuela led to a reduction in investment in exploration. The so-called giant oil fields (that is, with reserves of 1 billion tons and above), which were discovered and put into operation in large numbers in the second half of the XX century, are now almost a thing of the past. Many of them (including in Saudi Arabia, Russia, Iraq) are already close to depletion, or oil production on them is very slow. Of the giant deposits that have not yet been developed, only the deposits of ultra-viscous oil in Venezuela and Canada remain, but the first of these countries is under Western sanctions. Thus, despite the sufficient amount of world oil reserves, the development of a number of wells is difficult due to the influence of geopolitical factors. As a result, importers are forced to buy oil at high prices, which contributes to the acceleration of inflation and causes an increase in prices for petroleum products and other goods, including food. The shortage of energy resources can persist for a long time.