Analysts predicted a rise in oil prices above $150

The cost of oil may reach an all-time high and exceed $150 per barrel amid the refusal of oil companies to invest in exploration in favor of payments to shareholders, Bloomberg writes , citing a review by investment company Sanford C. Bernstein & Co. (SCB).

Details

• Oil companies have been forced to focus on increasing returns and shareholder payouts instead of investing in exploration, which has led to a drop in the level of reinvestment and reserves of the largest companies, analysts write. According to SCB, the reinvestment rate in the oil industry is at its lowest level, and the volume of proved reserves of the largest players has decreased by more than 30% compared to 2000. Only Exxon and BP have increased their inventories, and then through acquisitions.
• Over the next two decades, Asia's urban population will increase by more than 1 billion people, and this will stimulate the demand for cars, the growth of air travel and the increase in the production of plastics, which also requires oil.
• SCB analysts believe that a new super cycle could start if oil prices continue to rise through 2030 and beyond.
• In 2008, Brent oil rose above $147 a barrel, driven by booming demand and tight supply of commodities in what analysts say was a super cycle. On Friday, Brent traded around $77 per barrel.

Artem Gubenko