The Bank of Jamaica (BOJ) is projecting an increase in crude oil prices for the June 2022 quarter, underpinned by expectations that demand will continue to outpace supply, amid ongoing tensions between Russia and Ukraine, and the potential for additional sanctions to be placed on Russia.

For the June and September 2022 quarters, the central bank says crude oil prices are projected to average US$112.65 per barrel (a 19.5 per cent increase for the quarter) and US$113.40 per barrel (0.7 per cent increase for the quarter), respectively, which compares to quarterly averages of US$81.32 and US$77.72 in the previous projection.

Organization of the Petroleum Exporting Countries (OPEC) and its allies’ decision to only gradually raise output will also contribute to oil prices being elevated for longer, it was noted.

Meanwhile, it also comments in its latest Quarterly Monetary Policy Report (QMPR) that, “the US could lift the sanctions on Iran and Venezuela’s oil industries, partly ameliorating supply conditions.”

https://www.jamaicaobserver.com/business/boj-forecasts-more-energy-price-pressures/