Crude oil could hit $100 per barrel if the winter turns out cold, one analyst has warned, adding that natural gas prices could double from current levels.
There could be some pretty significant increases in pricing here if we do get some really cold weather early – so, in December, 2021. However, if the weather turns out to be mild during the winter, prices will correct during the first quarter of next year.
In a interview with Bloomberg, Ira Epstein from asset manager Linn and Associates said he expected West Texas Intermediate to hit $90 by the end of the year on strong demand for oil coupled with not enough new supply.
The sentiment was echoed by Goldman Sachs, too. The investment bank, which earlier this month revised up its price forecast for Brent to $90 per barrel by year-end, now says it could top $90 per barrel.
We would need prices to rise to $110 /bbl to stifle demand enough to balance the market deficit we currently see in 1Q22 given our expectation that OPEC+ continues on the current path of +0.4 mb/d per month increases in quotas.
Oil Price.com / ABC Flash Point News 2021.