Overview

Oil prices are affected by multiple factors globally. Those can include unforeseeable conditions like weather, economic uncertainty, and political instability in different regions of the world.

An assessment of where oil prices are currently, as well as where they are anticipated to go over the next year, may help you determine if oil is the right investment for you.

Oil prices are based on two grades of crude oil. The first is the WTI (West Texas Intermedia) and the North Sea Brent (Brent). WTI is U.S. based at Cushing, and is the benchmark for U.S. oil prices, specifically. Brent, which comes from Northwest Europe, is used as the benchmark for international oil prices.

WTI Price Short-Term Forecast

The Short Term Energy Outlook produced by the U.S. Energy Information Administration, or EIA, shows WTI crude is anticipated to average $69.02/barrel throughout 2021, and dip slightly to $68.28/barrel in 2022. Both are up substantially from the Covid-related drop of $39.17/barrel in 2020.

Substantiating that forecast, the IMF (International Monetary Fund) predicts 2022 seeing $63.11/barrel.

Brent Price Short-Term Forecast

The EIA Short Term Energy Outlook indicates Brent crude oil will average $60.74/barrel in 2022. This represents a significant rebound from the 2020 average of only $41.69/barrel.

The IMF is predicting a comparable recovery, with U.S. Brent prices at $56.23/barrel in 2022.

Production Forecast

The EIA is anticipating U.S. crude oil production will move up to 11.9 million barrels/day in 2022.

Additionally, OPEC stated in November 2021 it will adjust their production until reaching 5.8 million barrels/day, then hold at that level. This is expected to open up additional demand as international production is limited and reserves become depleted.

Laredo Oil’s Outlook

Based on the information currently available, Laredo Oil anticipates U.S. oil prices to continue to climb as demand intensifies as a part of the COVID-19 economic recovery.

Contributing to upward price movement is a global supply chain dysfunction. This is slowing and/or completely preventing shipments of many items, including necessary energy components, from reaching their destination. This lack of necessary components leads to less available crude oil, consequently increasing the price per barrel due to lack of supply.

We believe the short-term outlook for oil is highly favorable and will continue to be so, as industries work toward achieving post-covid production levels and continue their upward trend in energy requirement. This demand, coupled with limited production, will naturally result in increased prices.

Important Information

Transfer Agent:
American Stock Transfer & Trust Company, LLC (AST)
800-937-5449
https://www.astfinancial.com
help@astfinancial.com

Trading: OTC
Symbol: LRDC

Public Filings with the SEC: www.sec.gov
Complete archive of Laredo Oil, Inc. SEC filings available online in the SEC database.
To download PDF, Excel, or RTF versions of our public filings, you may create an account with EDGAR ONLINE.

SIC: 1311
CIK#: 0001442492
State of Incorporation: DE

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