Demand and supply pressures will offset each other in the oil market, and it’s possible for prices to remain in its current range in a year’s time as countries recover from the coronavirus crisis, said oil expert Dan Yergin. “If we really do have the rest of the world recover, I think it’s reasonable to think that oil would be in that $60 to $75 range,” the vice chairman of IHS Markit said. “That’s what the markets are telling us as the U.S. recovers, and China has already recovered,” he told CNBC’s “Street Signs Asia” on Tuesday.
Brent crude futures gained 1.33% on Tuesday afternoon in Asia to trade at $67.94, while U.S. crude futures rose 1.28% to $64.19. While one trader sees prices potentially spiking to $100, Yergin’s perspective is that a lot of supply is still offline, and can meet a surge in demand as global economies recover.
Europe’s Covid vaccine rollout has been slow to progress, and many Covid restrictions remain in place. The emergence of a more contagious variant has pushed the continent’s Covid-19-related death toll beyond 1 million.