World-leading oil companies and investment firms are reportedly predicting the price of oil could reach US$100 per barrel by end of the year. No doubt investors in ASX oil shares will be hoping this forecast does, indeed, come to pass.
The COVID-19 pandemic saw oil prices fall last year as global transport ground to a near halt. Since then, as the world has begun to open again, demand for oil has increased at a rapid pace.
At the time of writing, the price of Brent crude oil is trading around 47% higher than it was at the beginning of 2021 – going for US$75.27 per barrel.
After gaining 14.9% over the last 30 days, the price of oil is currently the highest it's been since 2018.
Over the same month, the Santos Ltd (ASX: STO) share price has gained more than 10%. Meanwhile, shares in industry peers Woodside Petroleum Limited (ASX: WPL) and Oil Search Ltd (ASX: OSH) have gained 5.74% and 6.06%, respectively.
So, could we see the oil price gain another 32% this year? That's what some industry leaders believe.
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Is the oil price set to skyrocket?
According to reporting by Bloomberg this week, world-leading investment firms and oil company bosses told the Qatar Economic Forum the price of oil could skyrocket before the end of 2021.
Bloomberg reported firms including Bank of America Corp (NYSE: BAC) and Goldman Sachs Group Inc (NYSE: GS) believe the price of oil might reach US$100 per barrel before the year is out.
Exxon Mobil Corporation (NYSE: XOM) CEO Darren Woods reportedly also told the forum that a lessening of investments into fossil fuels – which he said is currently occurring – will see demand for the commodity increase ahead of supply.
Leaders of Royal Dutch Shell and TotalEnergies purportedly agreed with Woods' assertion.
It's a similar story to the one Santos managing director Kevin Gallagher told the annual oil and gas industry (APPEA) conference last week.
Gallagher said investors and lenders have "turned off the taps" on western fossil fuel companies. He called on industry participants to decarbonise in the hopes that would encourage the support of investors and lenders.
