As the oil market continues to heat up, investors are increasingly considering the possibility of oil prices hitting $100 per barrel. This comes as premiums for physical barrels from the Middle East, Azerbaijan, and Russia are continually being sold for premium prices as seasonal demand continues to rise.
Crude prices are currently in the mid-90s, while Benchmark Brent has risen by 30% since March, largely spurred by output cuts from Saudi Arabia and Russia. This tightening of supplies has raised bets among industry leaders that prices will continue to surge in the near term.
In an interview on Bloomberg Television, Chevron Corp. Chief Executive Officer Mike Wirth stated his belief that oil will reach $100 per barrel. Amrita Sen, head of research at consultant Energy Aspects, supported this claim, explaining: “Fundamentals are very, very strong right now. At this point, it’s a short-term thing. I’m not saying it’s going to average above $100, but could it go to $100 for a bit? Absolutely yes.”