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.
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.
But Yergin acknowledged that it’s difficult to predict where prices will be, and said Europe’s recovery hangs in the balance.
“The U.S. is headed into a hyper economic recovery right now, China has a very strong recovery and that will push up demand,” he said.
Reference: CNBC
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