The international energy group estimated that oil prices will climb in the second half of the year as supply fails to match ramp up demand, particularly from India and China.
According to the International Energy Forum on Saturday, oil consumption has swiftly recovered to pre-Covid levels, “but supply is having a tougher time in catching up,” and the only factor moderating prices at the moment is the concern of an approaching recession.
On the sidelines of a meeting of energy ministers from the group of the 20 leading industrial economies (G20) in Goa, India on Saturday, IEF Secretary General Joseph McMonigle told CNBC, “So, for the second half of this year, we’re going to have serious problems with supply keeping up, and as a result, you’re going to see prices respond to that.”
McMonigle attributes the rise in oil prices to increasing demand from China, the world’s largest oil importer, and India.
When asked if oil prices could reach $100 per barrel again, he said that they are now around $80 per barrel and could go even higher.
McMonigle, however, is optimistic that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will move to raise supply if the globe succumbs to a “big supply-demand imbalance.”
