“Oil Could Hit $80 by Year End, JPMorgan Says. Here’s Why.”
July 21, 2021
“Oil is likely to jump to $80 a barrel by year end amid expanding demand and a lack of supply, according to JP Morgan analysts led by Joyce Chang.
The upcycle in energy prices is supported by a surge in demand as the world emerges from the pandemic and by “the unintended consequences of ESG [environmental, social and governance] and energy and transition policies,” the analysts write. Such policies are “reducing fossil energy capacity faster than demand can switch to renewables.”…
A JPMorgan analysis of the top publicly traded oil producers found a post-pandemic capital spending shortfall of around $600 billion through 2030, “highlighting how poorly supply is positioned to meet demand,” JPMorgan analysts write. To attract continued investment, prices must stay above $70 per barrel…”
https://www.barrons.com/articles/oil-could-reach-80-a-barrel-jpmorgan-says-51626809862?siteid=yhoof2