Monthly Pricing - 01/02/2022

Brent crude began the month at $81.13/bbl, steadily rising throughout, caused by multiple geopolitical crises, before finishing the month at a 7-year high of $90.03/bbl.

GBP fluctuated throughout January, steadily rising to reach a high of $1.371 against USD on the 13th, before gradually declining before finishing the month at $1.342.

Brent crude prices rocketed due to destabilised relations between the West and Russia, with conflict between the two looming over Ukraine’s desires to join NATO.

 

Price Drivers

Supply Attack by Houthi rebels on Iraqi pipeline affects supply. Adverse North American weather disrupts oil flows.


Demand IEA anticipates oil demand to rise by 3.3mb/d in 2022. U.S. to increase European fuel supply due to Russian cut-offs.  
Geo-political COVID restrictions are relaxed throughout Europe. Uncertainty over fuel supply causes major price hike.