Energy Consultant, Dr Yussif Sulemana has predicted that oil prices on the global market are likely to hit US$60 per barrel in the first quarter of 2021.

Currently, Brent crude oil is selling for about US$55.78 dollars per barrel increasing by a little over four dollars since the start of the year.

Dr Sulemana in an interview with Citi Business News elaborated on the likely causes of a potential increase in the price of crude on the global oil market.

“The OPEC plus member, Russia and OPEC de facto leader, Saudi Arabia seemly are now in agreement and this agreement started in the first quarter of 2020 that they are going to reduce up to 9.7 million barrels taken out from the global basket and that was significant. So that amount is still in place. OPEC reduction holding, vaccines in the horizon and the vibrancy of the Asian economies are the three things accountable for these bullish sentiments in the oil prices,” he said.

He said ” The projections are that, if this holds, oil price is going to gravitate to the mid-50s, that is 55 and if it still holds that there is good understanding among the OPEC plus members, Saudi Arabia, Russia, and oil price moves up a little bit, we could have it hitting US$60.”

He, however, indicated that some factors might impede the likely increase.

“The other component is US President Biden, likely to go to green energy. So going to green energy will have some impact on the world of Hydrocarbons. So if the investment is shifted to the world of green energy, which is likely to happen again, because this kind of energy movement is almost like leadership requirement. We just need leadership proclamation. So when Biden whole-heartedly says that he’s going to support green energy, the investment bankers are going to invest in it. Just like President Trump whole-heartedly supported fracking that resulted in investment bankers embracing it and investing so much into it. That allowed the USA to become crude oil independently,” he said.

The increase of oil prices on the global market reflected locally with petrol currently selling around GH¢5.1 per litre, an increase from the about GH¢4.8 per litre late last year.

Due to the COVID-19 pandemic, Brent Crude fell to US$22.58 a barrel in March 2020, its lowest level since November 2002.