Oil prices could be set for a “prolonged period” above $100 a barrel over the next six to nine months, with the world setting fresh demand records this year, said Vitol Group chief executive Russell Hardy.
The bosses of some of the world’s biggest oil companies said crude prices are likely to keep rising because a lack of investment will curtail future supply.
Energy Voice considers the prospect of an oil supercycle and its potential supply crunch, rising demand, and triple digit oil prices.
After three years of gloom, the number 100 is finally starting to resurface in the forecasts of market analysts.
Oil investors are buying contracts that will only pay out if crude rises well above $100 a barrel over the next four years -- a clear sign some believe today’s bust is sowing the seeds of the next boom.
London’s top flight index struggled for direction as commodity stocks came under pressure after the strong dollar sparked a drop in the price of oil.
The London market soared to a new high for 2016 as strong economic data from China overshadowed heavy falls from supermarket giant Tesco.
The London market sank deep into the red as the sliding oil price and lacklustre growth from the services sector punished top-flight stocks.
The London market struggled for direction, amid a fall in the price of oil and light trading across Europe.
The London market was on the front foot as traders reacted to Chancellor George Osborne’s eighth Budget with a cautious welcome.
The oil guru who predicted last year’s rout said $100-a-barrel crude is likely to return within five years as faltering supply fails to meet demand. Gary Ross, the founder of consultants PIRA Energy Group, said oil markets aren’t nearly as oversupplied as many believe and spare capacity is tight since Saudi Arabia is pumping all the crude it can without new drilling. “Current prices are unsustainable,” he said Monday in an interview in London. “It’s hard not to see oil hitting $100 a barrel at some point in the next five years.”