Oil Prices Unlikely to Climb to Extreme Levels Again, Expert Says

The oil market has been affected by the ongoing conflict in Russia and Ukraine, but experts believe it's unlikely to reach extreme levels like $150 per barrel again. According to Manpreet Gill, Chief Investment Officer at Standard Chartered, there are sufficient incentives for all parties involved to avoid such an outcome because high oil prices fuel inflation and stifle growth globally.

Gill anticipates that oil will remain around the $100 mark for some time, with positive news and ongoing talks potentially pulling it slightly lower, while less favorable developments could briefly push it above that threshold. He also notes that supply has not completely dried up, as some oil continues to flow from the region, helping to stabilize the market.

Regarding a potential return to pre-war price levels of $60 to $70 per barrel, Gill says 'A resolution to the conflict is required.' The market currently sits in a middle ground where the worst-case scenario is avoided due to shared economic incentives, yet positive catalysts remain insufficient to drive prices down toward $70. Over the long term, $70 per barrel remains the ideal benchmark for balanced economics.