According to financial analysts, after high volatility in the oil market in early 2020, prices for “black gold” may in the future exceed $ 100 per barrel and reach $ 150 by 2025, the Wall Street Journal reported.
Several experts interviewed by the publication predicted a decrease in investment in gas and oil production, which may lead to a jump in prices above $ 100 per barrel.
“Such financial pressure will be significant. Some producers will find it difficult to sell products. Prices can quite easily reach $ 150 by 2025,” the publication quotes the investment Director of Northern Trace Capital, Trevor Woods.
The decline in investment by companies will have a lasting impact on oil production opportunities, according to JPMorgan analyst Christian Malek. According to his estimate, oil production will decrease by 5 million barrels per day or 5% to pre-crisis levels. By 2030, it will be necessary to invest 625 billion dollars to balance supply and demand. As a result, oil prices will grow, and in the next two years, the cost of oil may rise to $ 100, the expert believes.
According to other analysts, the demand for raw materials may not recover to the previous level for some time. As a result, the price of oil will remain low. Most of the experts interviewed by the publication are inclined to believe that in the long term, quotes will stay at the level that will allow producers to make a profit by extracting the volume of oil necessary to meet demand. At the same time, the pandemic complicates forecasts: investors are not sure about the future preferences of consumers and the transition to more “clean” energy sources.
Recall that on Thursday, the price of a barrel of Brent crude for delivery in September during trading on the London Intercontinental Exchange (ICE) fell to 41.94 dollars.