Forecast: Oil prices will reach $150

Forecast: Oil prices will reach $150 There will be a need for significant investments to keep balance in supply and demand, and it will boost the oil price.
Energy
July 10, 2020 13:08
Forecast: Oil prices will reach $150

Oil prices may reach $150 a barrel by 2025, Report informs.  

“The financial pressure is huge. Some manufacturers will be really difficult to carry out production, – said the chief investment officer of hedge Fund Capital of the Northern Trace of Trevor woods. – Oil prices can easily soar to $150 per barrel in 2025”.

Moreover, the decline in investments may decrease production, says JPMorgan analyst Christian Malek. According to him, there will be a need for significant investments to keep balance in supply and demand, and it will boost the oil price.

Other analysts say that after the fluctuations at the beginning of 2020, the demand for oil cannot be restored for a while, and consequently, the low prices will remain. 

The fluctuations in the oil market stemmed from a failure in OPEC+ deal on March 6, and the prices fell by 30%. According to the agreement reached in May, OPEC+ agreed to reduce the output until April 2022. Thus, the prices began to rise.