Doha – The CEOs of renowned international oil companies have claimed that the crude oil rates would increase to the level of more than USD 100 per barrel. The senior officers said that this rise would be because of the reduced flow of investment in the sector. It is claimed that the oil companies have been comforted by the increase in the crude oil rates over the last two days. At the same time, the international media is saying that the news of the reduction in the US oil stocks affected the oil prices on Wednesday.
Nearly ten days ago, a US analyst predicted that the crude oil rates would cross the USD 100 per barrel mark by the end of this year. This analyst had claimed that this calculation would come true if the demand for crude oil increases on the international level during the second half of the year and the 4th wave of Coronavirus pandemic is averted. The analyst also said that for this to happen, the economies of the leading countries have to come back on track, and the oil demand has to touch 100 million barrels per day. The speculators in New York and other trading hubs have supposedly started purchasing crude oil at this price.
During the Economic Forum meeting that was held in Qatar, leading oil companies Royal Dutch Shell and TotalEnergies also expressed confidence that the crude oil rates will cross the USD 100 per barrel mark. Darren Woods, CEO of the ExxonMobil company, said that this rise would be because of the drop in investment in the sector. But this hike will be short-lived. Senior officials from Goldman Sachs and Bank of America also guarantee a price of USD 100 per barrel for crude oil.
The economies and markets of the United States and Europe are opening up again. This will have a positive effect on the crude oil prices. But this will be a short-lived phenomenon. Patrick Poyen, the CEO of TotalEnergies, claimed that the current trend is due to instability. But Poyen could not explain the reasons for this instability.
In the last two days, the crude oil rates have increased by USD 1.5. Till midnight on Sunday, 20th June, the crude oil rates were USD 71.82 per barrel. Whereas, on Wednesday, the crude oil rates reached USD 73.62 per barrel. US analysts and western media claim that this is the first spurt in the crude oil rates after 2018.
Meanwhile, reports are being received that US President Joe Biden is contemplating relaxing the oil-related sanctions imposed against Iran. In that case, the demand for Iranian oil will increase in the international market, which will directly impact the crude oil prices. Iran has a stock of 69 million barrels. Reports have been received that Iran has made preparations to despatch this stock to the buyers once the US President lifts the sanctions.