Investment guru Mark Mobius predicts oil prices will rebound to $60 by end of year.
The emerging markets investment pioneer seeks the $60 plateau as the supply of crude shrinks, giving a measure of relief to major oil producers such as the UAE and other Arabian Gulf nations, the National.com
“Oil is already rebounding," said Mobius, the executive chairman of Templeton Emerging Markets Group. “We think it will continue. It’s quite possible for $60 a barrel.”
Brent crude was down 44 cents at $44.53 a barrel late Wednesday, after trading as high as $46.01. U.S. crude was down 17 cents at $43.48 a barrel, after hitting a session high at $44.88, Reuters
Mobius said falling rig counts and traders who buy oil derivatives as a financial investment covering bets that the price of oil will decline further have contributed to rising prices, the National reported.
Oil is unlikely to rebound to $100 per barrel soon, however, as $60 per barrel is still above most break-even prices for Arabian Gulf producers, he said.
The price of oil has jumped 76% from the decade-low it hit earlier this year.
“Even as oil rallies, analysts have barely nudged up their price forecasts as they worry that crude’s recent gains might not be sustainable,” the Wall Street Journal
Other experts see the price settling much higher.
Oil tycoon T. Boone Pickens recently warned Newsmax TV
that oil prices will continue to surge back to lofty levels, touching $80 by the end of next year.
“By the end of this year it'll be $50-60 a barrel and the end of '17 I'd say $70-80,” he told “The Steve Malzberg Show.”
“You're coming back up again because you've shut down all the drilling. In the United States you've shut down 80 percent of it. We have 1,609 rigs running in November of 2014. Today we have 342,” he said.
Watch Newsmax TV on DirectTV Ch. 349, DISH Ch. 223 and Verizon FiOS Ch. 115
. Get Newsmax TV on your cable system – Click Here Now
The chairman and CEO of BP Capital Management spoke on the same day that crude oil prices hit 2016 highs on the back of a rally in the gasoline market and after an industry group reported a surprise draw in U.S. crude stockpiles.
© 2021 Newsmax Finance. All rights reserved.