By Curtis Williams
HOUSTON (Reuters) -The chief economist of oil major Equinor on Wednesday said global crude prices could rise to $100 a barrel based on the OPEC oil-producers’ group decision this week to maintain supply cuts.
“I wouldn’t exclude that we can have prices reaching $100 a barrel, but that wouldn’t be because OPEC would like it to reach there. I don’t think they are aiming for that price,” said Equinor Chief Economist Eirik Waerness.
An OPEC+ ministerial panel on Wednesday made no changes to the group’s oil output policy, after Saudi Arabia and Russia said they would keep voluntary supply cuts in place to support the market.
OPEC likely is aiming for a price lower than $100 a barrel, to ensure that there is no collapse of oil demand, Waerness said on the sidelines of the Baker Institute Center for Energy annual energy summit. Market supply and demand support rising prices, he added.
“It is a relatively tight market in terms of how much oil is in storage, (and) how much spare production capacity that the world has,” he explained.
Europe could reduce its carbon dioxide (CO2) emissions by 70% by 2050 mainly due to the region’s growth in electrification, Waerness said.
Waerness’ comments echoed those of other oil executives arguing for continued investment in oil and gas to keep pace with growth in energy demand even as net zero greenhouse gas targets fall away.
Oil demand will peak by 2029, but gross domestic product expansion will require increases in oil supplies for the next three to five years, he said
(Reporting by Curtis Williams; Editing by Kirsten Donovan)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.