MOSCOW, September 13 – PRIME. At JPMorgan Chase & Co. oil prices are predicted to rise as demand exceeds supply and alternative energy sources such as natural gas and renewable fuels fail to fill the gap.
Christian Malek, chief oil and gas analyst at JPMorgan, on Tuesday reiterated his forecast for oil prices to hit $150 a barrel.
Global production growth is lagging behind consumption growth, Malek said. “We again return to the question of how we will fill the energy shortage in the future,” the expert emphasized. “We will not be able to use coal or natural gas – we are already using them to the maximum. We will have to use solar and wind energy, and when they are not enough, we will continue to see a significant shortage of oil, and this means that it will rise in price significantly.
According to Malek, global oil companies are not investing enough in the development of new fields, and the market is too dependent on the supply of OPEC countries. On the demand side, China’s oil consumption is likely to recover once the lockdowns are lifted, Malek added.