“The combination of the supply and demand side dynamics suggests that the global oil market could move into large and sustained deficits past 2022, reaching an extreme 1.7 million barrels per day by 2025. Running this scenario through our pricing model suggests these balances would lead to Brent oil prices rising steadily from 2022 onwards, averaging around $80/bbl in 2023, $100/bbl in 2024 and $190/bbl in 2025.” - JP Morgan March 3, 2020.
Read: https://seekingalpha.com/article/435246 ... s-possible
There are many things to debate in this article, but the underlying premise is solid: The SIGNIFICANT DECLINE in spending on exploration, drilling, completions and the massive loss of skilled workers will create a period of under-supply. Even in "Post Coronavirus World" demand for oil based products will bounce back to at least 95% of were it was in 2019 and this world's production capacity is not going to be there to support it.
Oil Price Forecast - June 8
Oil Price Forecast - June 8
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group