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After hitting four-year highs early in the year, crude oil slipped.
The reinvestment and capital spending levels of the oil companies also point to a potential reduction in supplies, he adds.
"The industry, over the last three years, has regularly under-invested and continues to do so at a rate of only 60% of reinvested cash flows in the form of investments," Raymond explained. "The last time it happened [was] in 2004 and '05 that precipitated a peak at $ 147 a barrel. "
Oil producers tightened their belts during crude oil sales in 2014 and 2015, with the goal of minimizing losses. Exxon Mobil, for example, reduced its exploration spending in 2014 by 15% and 9% in 2015.
The next crude oil decision will also depend on how the Trump administration's trade problems will impact, according to the analyst.
"As we get more clarity on what is happening with global demand and, to some extent, some kind of tariff away from Washington, I think that in the end,
"If part of this solution is resolved in a relatively amicable or healthy way, the global demand curve is maintained, so I think we run a real risk in 2019 and beyond significantly higher prices," he said. -he adds.
According to OPEC estimates, growth in oil demand is expected to increase by 1.64 million barrels per day to reach 98.83 million barrels per day. It is expected to increase further to reach 100.26 million barrels per day in 2019.
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