Oil prices could “very easily” score $100 a barrel in the outcome of the disappointed OPEC+ talks, former U.S. Energy Secretary Dan Brouillette notified CNBC on Tuesday.
You could quickly see oil running $100 a barrel — probably even higher, he informed CNBC’s Hadley Gamble.
On the flip side, it’s “equally possible” that prices could drop too.
If there isn’t any production deal, and countries mind going off and doing their own thing or doing their production, you could have a breakdown of oil prices, stated Brouillette, U.S. energy secretary from 2019 to 2021.
OPEC and its partners, referred to collectively as OPEC+, twice disappointed to reach a deal on oil production last week. On Monday, different try to reopen talks broke down, and talks were put off indefinitely.
The energy agreement, which involves Russia, had tried to raise supply by 400,000 barrels per day from August to December 2021 and suggested extending the duration of cuts until the end of 2022. Last year, to cope with lower demand due to the epidemic, OPEC+ agreed to curb production by almost 10 million barrels per day from May 2020 to the end of April 2022.
The United Arab Emirates had designated that, while it was supportive of the plan to boost supply, it objected to the terms of the extension.
Oil Prices are rising to three-year highs
Prices rose to three-year highs following the breakdown of those talks on Monday. On Tuesday, throughout Asia trading, they grew even higher. U.S. crude pushed through $76 per barrel, and international benchmark Brent was higher than $77 per barrel.
Oil prices exceeding $100 would destroy demand, urged oil expert Dan Yergin. He stated that it would not be in countries’ interest.
He thinks countries understand that $100 barrel oil would not be in (their) interest, Yergin, the vice chairman of IHS Markit, informed CNBC’s Street Signs Asia on Tuesday. You would see governments flow more incentives into electric cars and see the influence on demand.