Socar Trading Head Expects Oil to Hit $80 a Barrel This Year - Bloomberg


Socar Trading Head Expects Oil to Hit $80 a Barrel This Year - Bloomberg
Oil prices will hit $80 a barrel this year as demand comes roaring back and producers won’t be able to immediately respond with sufficient supply, Socar Trading SA said, joining a chorus of bullish calls on the market.
Hayal Ahmadzada, Socar’s chief trading officer, said the glut of excess oil stocks that built up in 2020 in response to the pandemic will be fully drawn down by the summer. At the same time, soaring prices for steel used in pipes, wells and fittings as well as the high cost of capital for producers will crimp a meaningful supply response by an already hobbled industry even as demand returns.
“I will not be surprised if we see $80 a barrel in summer or before year-end and above $100 a barrel in the next 18 to 24 months,” Ahmadzada said in an interview from Baku, Azerbaijan.
The global trading arm of the government-controlled State Oil Company of Azerbaijan Republic, Geneva-based Socar Trading is one of the world’s biggest energy trading houses, handling around 1 million barrels a day of crude and petroleum products, giving it keen insight into global energy supply and demand.
Socar Trading Head Expects Oil to Hit $80 a Barrel This Year - Bloomberg

[Author: [email protected] (Rupert Neil Bumfrey)]


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