Oil prices will rise to $140 per barrel by the end of the year, according to hedge fund manager Pierre Andurand, who added that the recent slump was speculative due to banking sector problems.
Even if oil demand peaks near the end of this decade, it will not fall precipitously, according to Andurand at the FT Commodities Global Summit.
“Even when we peak, oil demand won’t fall down so fast. “We will reach peak demand around 110 million barrels per day and then begin a slow decline,” the hedge fund manager said at the summit, according to Reuters.
Andurand predicted earlier this year that oil could reach $140 per barrel this year if China’s economy fully recovers.
Amrita Sen, Director of Research at Energy Aspects, also expressed optimism about oil demand in the second half of 2023 at today’s FT Commodities Global Summit.
After the reopening, demand in China will be very consumer-driven, Sen said at the summit, adding that gasoline and jet fuel demand will rebound.
“Jet will be the big story this year,” Sen said.
Oil prices fell by $10 per barrel in one week as markets were roiled by the failure of two US banks and the near-collapse of Credit Suisse, which was saved by a takeover by domestic rival UBS.
Early Tuesday, oil prices were attempting to recover. Crude oil futures are finding a bid as short selling pressures begin to ease, potentially raising the risk of a squeeze on a break above $75 Brent and $70 WTI, according to Ole Hansen, Head of Commodity Strategy at Saxo Bank.
“Crude oil, down around 12% this month, remains the biggest casualty among key commodities as the banking crisis and risks to the global economic outlook have led to short-term price and demand downgrades,” Saxo Bank said early Tuesday.
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