Inside OPEC, views are growing that oil’s rally could be prolonged
LONDON: Oil’s rally may extend further in the next few months due to recovering demand and limited capacity in OPEC+ to add supply and prices could break $100 a barrel, OPEC officials have told Reuters.
Oil last traded at $100 a barrel in 2014, after averaging $110 a barrel over the previous two years. Rising shale output and competition among the world’s top oil producers in 2014 heralded a period of lower prices that appears to have come to an end as the global economy emerges from the pandemic.
Until recently, the prospect of a return to triple digits was viewed as remote, but the market has recovered quickly from the unprecedented slump in demand sparked by the pandemic in 2020 with oil prices at one point turning negative.
