Oil Will Hit $100 in Around 18 Months
Oil did not manage to even scratch USD 100 before COVID and now it shall bust the ceiling in 18 months. Some shale will be cut back but it’s cosmetic. Because some of the shale players plan to go back at USD 30 and guess what, we are less than 10 USD below that. We will take another dip by the end of May when the June future unwinds – possibly even negative prices again. But during summer there will be more cutbacks. Because most OPEC+ producers don’t make money below USD 30. They are all bleeding money and there will be shut ins. Shale will not be that inhibited. This is the cleanout of its history. The weak shale players get culled, the strong ones restructure. Evolution plays its game. But USD 100 – cant see that. If I am wrong, shale will go on hyperdrive.
