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- Oil prices could ‘very easily’ top $100 a barrel - former U.S. energy secretary
Oil prices could ‘very easily’ top $100 a barrel - former U.S. energy secretary
CNBC reports that former U.S. Energy Secretary Dan Brouillette told that oil prices could “very easily” hit $100 a barrel in the aftermath of the failed OPEC+ talks.
On the flip side, it’s “equally possible” that prices could collapse too.
“If there isn’t any agreement on production, and countries tend to go off and do their own thing, or do their own production, you could have a collapse of oil prices,” said Brouillette, who U.S. energy secretary from 2019 to 2021.
OPEC and its allies, referred to collectively as OPEC+, twice failed to reach a deal on oil output last week. On Monday, another attempt to resume talks broke down, and discussions were put off indefinitely.
Prices soared to three-year highs following the collapse of those talks on Monday. On Tuesday during Asia trading, they surged even higher.
Oil prices topping $100 would destroy demand, warned oil expert Dan Yergin, who said that it would not be in the interest of countries.
“I think countries recognize that $100 barrel oil would not be in (their) interest,” Yergin, the vice chairman of IHS Markit, told. “You would see governments pour more incentives into electric cars, and see the impact on demand.”
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