Ratings agency, Fitch, has revised its end-year forecast for the price of Brent Crude to $105 dollars per barrel, from the previous $100.

This will come as good news for oil producing countries such as Ghana, but bad news for petroleum consumers.

The high price of the commodity also indicates that transport fares will remain high. This will consequently affect some prices of goods on the market and trigger the rate of inflation to increase further.

Fitch attributed its new projection to trade flows disruptions and redirection as well as higher post-pandemic demand.

“Our raised oil price assumptions reflect disruptions of established supply channels and growing oil demand. The EU has banned seaborn imports from Russia, so it will have to replace about a third of all oil imports with supplies from other regions, while larger volumes of Russian oil will go to India and China”.

“However, the use of spare capacity and trade flows redirection will eventually reduce the pressure on global oil supply, so we expect the prices to moderate. Our long-term oil price assumptions are unchanged”, it added.

“We have also increased our European TTF gas price assumptions for 2022-2025. The EU aims to reduce its dependency on Russian gas supplies mainly by increasing the supplies of liquefied natural gas (LNG) in the short term. Prices will be further underpinned by physical gas supply disruptions and Russia’s demand for payments in Russian roubles, where a refusal could halt supplies”, Fitch explained. 

The government of Ghana budgeted $62 per barrel for crude oil in the 2022 budget.

Meanwhile, crude oil shot up marginally, a while ago, to 123 dollars per barrel on the world market.