High oil prices are set to continue well into 2023, with the average price of the global crude Brent benchmark expected to continue to trade above $80 a barrel, according to Bank of America.
The benchmark, under which two thirds of oil is traded, is forecast to average $85 a barrel in 2022 and $82 a barrel in 2023.
The bank revised its estimates from $75 and $65 a barrel previously, according to its latest research note to clients.
West Texas Intermediate, which tracks US crude grades, is set to trade at $75 and $70 a barrel in 2022 and 2023, up from $71 and $61, respectively.
Both benchmarks have rallied to multiyear highs, gaining more than 60 per cent since January amid a global energy crunch and rising demand, after a slump in 2020 induced by declining demand due to Covid-19.
Brent was trading 0.46 per cent higher at $85.10 a barrel at 11.21am while WTI was up 0.26 per cent at $84.27 a barrel.
BofA said it now believes "the run-up in global gas and coal prices has turbocharged the Brent and WTI price recovery".
"As we look into 2022 and 2023, we still expect oil to move from a steep deficit that has seen global inventories draw at a rate of 1.2 million barrels per day in the past six months to a more balanced market," the report said.
BofA expects Brent to reach $100 a barrel by mid-2022 if the Northern Hemisphere winter is colder than usual. Oil prices have surged due to a tight market for crude, growing demand and a shortage in oil and gas supplies around the world.
Natural gas prices, which are linked to crude, have nearly doubled this year as several parts of the world, particularly Europe, experience shortages.
The Henry Hub price for natural gas was up 1 per cent at $5.238 per million British thermal unit.
"In an attempt to reduce the gap between oil demand and supply, energy companies in the US have added natural gas and oil rigs for the last 15 consecutive months," said Naeem Aslam, chief market analyst at AvaTrade.
BofA expects the crude supply environment to remain fairly tight due to broader underinvestment in the oil and gas industry and low spare capacity among the Opec+ group of nations.
US shale, which conventionally rises in supply to higher oil prices, remains muted.
"We estimate the price elasticity of US shale supply has dropped by more than half," BofA said. "Plus oil demand growth should stay robust thanks to easy policies, as oil prices remain below the point where demand destruction could kick in."
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Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
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UAE currency: the story behind the money in your pockets
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
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What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
