Kees Hoving, Co-CEO of Deutsche Bank Middle East and Africa, predicts that the average price of Brent crude will decline to $64 per barrel by mid-2022. He stated, "We expect oil supply to increase in 2022, surpassing the rise in demand." In a special interview with Al Arabiya, Hoving highlighted that factors such as COVID variants, rising inflation, and central bank policies are crucial influences on markets in 2022.
He elaborated that the impact of COVID on supply chains and food security is significant, mentioning the need for substantial investments to combat climate change. He noted that inflation would affect asset prices and investment in 2022, while banks can help mitigate risks and allocate assets.
Hoving indicated that Deutsche Bank has a positive outlook for Gulf countries in 2022, particularly Saudi Arabia, with improving oil prices and performance under Saudi Vision 2030, which features a clear investment strategy. He remarked, "Saudi Arabia and the UAE have taken effective steps to address economic challenges, and rising oil prices have enhanced the Gulf countries' capacity to invest." Hoving also warned that COVID variants could impact the tourism sector and its investments in 2022.
