Could Brent’s break above $100 be sustainable?

The price of oil has increased by more than 25% so far this quarter. Analysts predict that Brent will surpass $100 in the near future. They do not think it will be sustainable, though. The last time Brent was seen trading above $92 a barrel.

Although the oil price surge is likely to continue, it won’t be long-lasting. Economists also expect oil prices to break above $100 in the near term as supply cuts by OPEC+ countries more than offset weaker demand due to the global economy’s slowdown.

However, analysts don’t see oil prices as able to remain above $100 for long as weaker demand as well as political pressure to increase supply constitute two factors that help to bring oil prices back to levels slightly above $90.

Due to OPEC+’s voluntary production restrictions, oil prices have risen sharply, with Brent crude up 10.76% in the previous month and almost 24% since July 1. Prices of crude derivatives used in a variety of industries, such as paints, tyres, consumer products, cement, and airlines, have increased as a result.

Titanium dioxide, carbon black, aviation turbine fuel, high-density polyethylene, and pet coke are five essential items that have all experienced increases. Carbon black recorded the largest increase at 22.22%, followed by aviation turbine fuel at 23.84%.