Oil Likely to Hit $100 a Barrel, Say Top Traders

Top oil traders say $100 crude is looking like a real possibility citing a slowdown in investment in supplies before demand has peaked.

David Sheppard and Neil Hume, Financial Times
Oil Likely to Hit $100 a Barrel, Say Top Traders

Oil has not traded above $100/bbl since 2014, when a surge in supplies from the U.S. shale sector brought the last so-called supercycle to an end (Source: Hart Energy)

The world’s top commodity traders have forecast a return to $100/bbl oil, as investment in new supplies slows down before demand has peaked and before green alternatives can take up the slack.

Executives from Vitol, Glencore and Trafigura and Goldman Sachs said on June 15 that $100 crude was a real possibility, with prices already reaching their highest level in two years this week as Brent crude moved above $73/bbl.

The prediction comes at a time when concern about inflation is rising and many commodities, such as copper, have already reached record highs, boosted by supply shortfalls as the economic recovery gathers pace.

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