Tue, 06/29/2021 - 12:00 PM
However, the timing of the last oil boom still remains uncertain and will depend on several factors including lingering lockdown restrictions.
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As economies begin reopening, the post-pandemic demand recovery will lead to one of the strongest-ever growth periods for oil demand. Although this supercycle will be unlike earlier oil price booms, according to a new report by Boston Consulting Group (BCG).
“Although BCG does not make price forecasts about oil or other products, we do anticipate that this cycle will cause a substantial rise in prices well in excess of the $75/barrel Brent market level we are close to at present,” Rebecca Fitz, senior director of BCG’s Center for Energy Impact, told Hart Energy.
Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More kosu.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kosu.org Daily Mail and Mail on Sunday newspapers.
Apu Gomes/AFP via Getty Images
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Oil pump jacks operate at dusk in Long Beach, Calif., on April 21, 2020. After getting burned by the oil industry s previous boom-and-bust cycles, Wall Street now wants energy companies to pump less crude, not more. Apu Gomes/AFP via Getty Images
Oil prices have risen sharply over the last few months. Normally, that s a recipe for a drilling frenzy from U.S. oil producers. But something strange is happening, or rather, not happening. U.S. producers are actually being restrained at the moment, says Helima Croft, global head of commodities strategy at RBC Capital Markets. They are trying to be disciplined.
Apu Gomes / AFP via Getty Images
Oil prices have risen sharply over the last few months. Normally, that s a recipe for a drilling frenzy from U.S. oil producers. But something strange is happening, or rather, not happening. U.S. producers are actually being restrained at the moment, says Helima Croft, global head of commodities strategy at RBC Capital Markets. They are trying to be disciplined.
Oil companies are under a lot of pressure to keep their production down. And the call is coming from inside the house: it s oil
investors who are pushing for companies to pump less oil.
Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More whqr.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from whqr.org Daily Mail and Mail on Sunday newspapers.