The oil markets have been topsy-turvy in the past two years. Stabilization should have occurred, but because of the ongoing COVID-19 pandemic, the markets have been slipping and returning to normal. The gaps in supply chains have also left oil delivery contracts in limbo as the global supply chain gaps continue to shock the world.
Many people wonder what the world will look like in 2022 without realizing that things will potentially get better. Here are a few things projected to occur in the oil markets as the world move towards 2022.
Supply Chain Gaps are Likely to Continue
One event that has things rolling the other way round in the oil market is the delivery gaps in global supply chains. We expect gaps to continue as the world grapples with the COVID-19 pandemic.
It has affected global markets negatively. The pandemic has proven to be a great leveler for getting goods delivered from the source. These gaps are likely to continue as the COVID-19 pandemic doesn’t have any end in sight.
Oil Prices Are Going to Rise as Generation Z Gets Older
Oil prices are likely to rise as generation Z, the wonder generation that grew up with technology gets older. The reason for this is that generation Z has become dependent on technology without understanding the energy implications.
While renewable sources generate much of the world’s electricity needs, generation Z still depends on fossil fuels for most of its activities. With fewer sources of fossil fuels discovered, oil prices shall rise regardless of the green energy sources available.
Millennials are Going to Go Broke
The rise of new technologies and a lack of earning power spells trouble for the millennials. This class of people is the ones who are carrying the debt burdens that previous generations didn’t have. As millennials continue to grow older in a technology-filled world, the debts will continue to mount.
The problem is not with debts, but with their dependence on these debts. And fossil fuels continue to be a major expense in this scenario. So, the global oil market will continue to have consumers who need the products but don’t have the paying capacity. Borrowing to pay for these needs is a last resort.
Emerging Technologies Will Grow
The fossil fuel imprint of technology is likely to continue its upward trajectory. The reason for this is the fact that emerging technologies are also largely dependent on fossil fuels. The oil market will continue to have this contributor to its profits as a result of this dependence.
Other Dependents for Refined Oil Products Won’t Have Alternatives
The other dependents of the distillation of oil products will continue to have to follow their natural production processes. We have a lot of products that come from the refining of crude oil. People need these products. As such, the oil market is going to keep going up as the people’s needs continue to rise.
The oil market will continue to rise. There’s no going around that. The issue is if we are ready for the next oil boom. It is a continuous investment opportunity.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only.