The current rise in oil prices and the boost that it’s giving the markets is unlikely to last according to analysts.
The current rise in oil prices and the boost that it’s giving the markets is unlikely to last according to analysts. While short-term price gains are to be expected when circumstances suggest a change in stock levels, the medium-term expectation is still subdued. Today BP’s CEO Bob Dudley said the current climate felt like the 1986 price drop, which didn’t rebound until Iraq invaded Kuwait four years later. Dudley told Bloomberg that the sub-$60 barrel could be around for three years. Others disagree with that with many analysts expecting a recovering price by the end of the year, perhaps around $80, while OPEC’s secretary-general has warned that lack of investment could push the price to $200!