For 2022 at least, OPEC+ can manage supply and, as such, strategists at Société Générale forecast Brent prices to average $77.5/bbl in 2022.

The market balance to remain in surplus throughout 2022

“We revise up our oil price forecasts for 2022 by $10/bbl, as the oil market environment becomes more bullish.”

“We now forecast Brent prices at $80/bbl in 1Q22 and to average $77.5/bbl over 2022.”

“OPEC still maintains a healthy supply cushion, Iranian barrels have yet to be released into the market and US shale could respond at these price levels despite companies maintaining strong discipline. Beyond 2022, however, things could get very bullish, as demand recovers but longer-term supply is vulnerable, with lower global upstream spending fuelling speculation about adequate oil supply.”