Supply shocks dominated global commodity markets in 2022, and we saw the dark side of globalisation.
The oil market, already prone to volatility, left energy analysts stumped on what would happen next. Oil geopolitics have never been tenser, and the battle lines were drawn in 2022.
Key takeaways
-
2022 was an eventful year for the global oil market, mostly due to Russia’s invasion of Ukraine amidst tight oil supplies, with bullish investors smiling to the bank.
-
We expect that events that started in 2022 will continue to influence oil prices in 2023. Events such as the price cap and EU ban on Russian oil, China lifting lockdown restrictions and a possible recession.
-
Ultimately, Nigeria is a price taker in the global oil market. Our production levels and the petrol subsidy will determine our ability to benefit from high prices.
Russia’s invasion of Ukraine was the most significant catalyst, making oil
