Oil prices will rise to $150 unless US increases production

If the US does not increase oil production, oil prices will rise to $150 per barrel. A top official in the US shale oil industry warns against this.

“Once crude oil production Permian Basin Peaks, lack of availability of new resources, and shortages could occur, with oil prices fluctuating between $120 and $150 a barrel,” Continental Resources CEO Doug Lawler said earlier this week. Bloomberg TV.

“This will put considerable pressure on the economy,” the CEO warned. “If we can’t start new drilling, you’re going to see prices go up quickly.”

U.S. crude is currently hovering around $90 a barrel as production cuts by OPEC+ countries have fueled a strong rally in oil prices in recent months.

For now, U.S. oil production remains strong: Energy consultant Rystat Energy expects to produce about 13 million barrels of oil per day in the fourth quarter of this year. According to the Western energy agency IEA, the United States is the fastest-growing oil producer outside the OPEC+ countries

However, some analysts are concerned about the rising oil price and its impact on the economies of the US and the West, which are major oil importers, as it creates additional inflationary pressure.

Investment banking analysts JP Morgan warned last week Oil prices could rise above $100 a barrel again if global oil supplies continue to come under pressure.

Oil prices at $120 per barrel will do significant damage to the economy. If this happens due to supply constraints in the coming weeks, the global economy could come to a standstill in the next quarter, analysts at the investment bank said.

Also read: Russia sees sharp drop in oil and gas revenues in May – exports lower yield

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