On Wednesday, Global oil prices continued their surge as traders and analysts yed the prospect of crude spiking above $100 per barrel this year since 2014.
Hitting a two year high, Brent traded above the $70 mark for the third consecutive day, while US standard West Texas International in negative territory a little over a year ago.
With large amounts of speculative money in New York and other trading hubs buying contracts at that price.
It would require a significant uptick in demand in the second half, but that scenario is definitely possible as long as we don’t see a fourth wave of the COVID-19 virus.
Malek did not rule that out as economic recovery accelerated in most of the big global economies such as the US, China and Europe.
Many of the others have the capacity but Saudi Arabia, UAE and Iraq have spare capacity.
We don’t see that how the world will meet the future demand so there is an urgency to invest in spare capacity.
“In fact, at some stage, we’re going to need Iranian oil because we’re running out of spare capacity.”
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