The current oil crisis will severely reduce investment in new oil production, causing oil prices to rise by $ 100 or $ 150 a barrel over the next five years, many analysts told the Wall Street Journal.
Analysts are basically divided into two camps - those predicting high oil prices due to the epidemic and a severe resulting downturn in the new oil fields, and saying that life in the new normal would mean that demand would never go back -COVID cannot return to -19 levels.
At the bull camp, Trevor Woods, a chief investment officer of Northern Trace Capital, an Ohio-based hedge fund, told the Journal that they can easily cover $150 by the year 2025.
Woods prompted his prediction with upcoming pressure on producers to finance new developments.
Cristian Malek heads JPMorgan's oil and gas research for Europe, the Middle East and Africa due to a dramatic drop in investments.
According to the International Energy Agency (IEA), the oil and gas sector will see the biggest drop in investment this year compared to last year. Investment in oil and gas is set to decrease by 2027.6 billion dollars in 2020, compared to about one-third.
JP Morgan's Malek told the Journal that they can definitely increase the oil market to $100 in the next by 2022.
However, Citigroup believes that crude oil prices will return to the three-digit level again.
The idea of $ 100 or more of oil, "far more fantasy than reality is at its heart," Citigroup commodity analysts said in a note earlier this month that Brent was $ 45 a barrel over the long term. Potential oil price scenario far higher than $ 60 per barrel.
In more pessimistic news, Citi analysts said, "The increase in oil product demand will stagger significantly, changing its adaptations and never returning to pre-COVID-19 rates of growth."
.JPG)
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