Global oil prices will reach $150 per barrel on the back of imbalance between demand and supply, Christyan Malek, JPMorgan's global head of energy strategy, said, Trend reports via Bloomberg.
According to the expert, oil prices will rise as demand exceeds supply, and alternative energy sources such as natural gas and renewable fuels will not be able to fill the gap.
He noted that energy use, namely coal and gas, is “maxed out”, and even using solar and wind power will not be enough. A significant shortage of oil is inevitable, which will, in turn, lead to the substantial price increase.
Also, according to Malek, global oil companies are not investing enough in new field development, and the market is too dependent on the OPEC countries' supply. On the demand side, oil consumption in China is likely to recover when COVID-19 lockdowns are eliminated.