"Oil could reach US$ 100 per barrel" | Daily News

"Oil could reach US$ 100 per barrel"

It is “quite possible” that the WTI Crude Oil prices reach US$ 100 per barrel in light of growing global demand for energy commodities, Russian President Vladimir Putin said on a CNBC Panel at the Russian Energy Week on Wednesday.

Asked by CNBC’s Hadley Gamble whether the U.S. benchmark could hit US$ 100 a barrel, Putin replied “That is quite possible.”

However, Russia and its allies in the OPEC+ oil producer group want a stable oil market without any shock spikes in prices, Putin said.

Oil prices could hit $100 in case of a colder winter, some analysts and investment banks have said in recent weeks. Record-high natural gas prices are forcing some utilities to switch to oil derivatives instead, boosting demand for crude.

Oil prices could stay at higher levels in the years to come as demand rebounds while supply remains tight, according to Goldman Sachs’ head of energy research.

Damien Courvalin, who is also a senior commodity strategist, said the market fundamentals warrant higher prices and that the bank’s forecast for Brent crude is US$ 85 per barrel for the next several years.

“This is not a transient winter shock like it could be for gas. This is actually the beginning of a material repricing higher for oil,” he told CNBC’s “Street Signs Asia” on Thursday.

Goldman Sachs’ base case is for Brent to hit US$ 90 per barrel by the end of the year.

U.S. crude futures were up 1.26% at $81.45 per barrel, while international benchmark Brent crude futures gained 1.24% to trade at $84.21 per barrel on Thursday afternoon in Asia. (CNBC)

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