The oil price could rise to 100 dollars a barrel now that the oil demand is picking up strongly due to the economic recovery from the corona crisis. In addition, decreased investment in new projects in the oil sector could lead to tight supply, boosting prices.
That’s what top executives of major oil and gas companies and oil market experts say.
The price of a barrel of Brent oil (of 159 litres) now stands at more than $75, the highest level in more than two years. Darren Woods, CEO of US oil group ExxonMobil, said that prices could likely continue to rise in the short term at an economic forum in Qatar. “Lower investment will amplify the pressure between supply and demand as economies recover. Over time, we will see the supply pick up again, and the balance will come back,” Woods said.
Patrick Pouyanné, CEO of France’s TotalEnergies, also thinks there is a “reasonable chance” that the oil price can go to 100 dollars, but that lower prices can also be seen in the coming years. “We are used to volatility in the market,” said Pouyanné.
Experts from trading house Trafigura and Bank of America have already indicated that the oil price could exceed 100 dollars. The price of Brent rose 46 percent this year, and a barrel of US oil became more than 50 percent more expensive. Last year, oil prices came under very strong pressure due to the corona crisis. Due to the crisis, oil companies cut investments for new production.