For the remainder of the year, oil prices are predicted to stabilize at about $84 per barrel.
John Ashbourne, Global Economist for Emerging Markets at Fitch Solutions, claims that changes in the world economy, such Russia’s invasion of Ukraine, have an impact on this.
However, crude oil prices will see a tiny increase in 2024, according to John Ashbourne, who was speaking on “Emerging Market Monetary Policy, Understanding the Pivot”.
“Oil prices in dollars per barrel was a huge kick in 2022 with the Russian invasion of Ukraine. Since then, oil prices has gone down a bit, so oil prices will stabilize around $83-84 per barrel.”
“This shows the change in commodity prices between each of these years compared to the preceding years. So in 2022, the average price in 2022 is compared to the price in 2021. In 2023 is compared to 2022 and so on”, he added.
In 2022, the average price of a barrel of Brent crude oil was $100.93. While the price was $41.96 per barrel in 2021, Brent crude oil’s average price was $70.86 per barrel.
Inflation will be impacted by the price of crude oil, but not in the same way as it was in 2022, according to Mr. Ashbourne.
“The shape is relatively similar, which I would say that prices of most commodities jumped dramatically in 2022”.
He concluded that “The push of commodity prices is very negative compared to this year. It will be slightly positive in most cases next year, but not by very much”.
If oil prices hover around $84 per barrel, fuel prices in Ghana will largely remain same till the rest of the year.