An oil crisis owing to increased demand and short supply may be on the cards taking oil prices to $100 per barrel before the end of 2021, Maglan Capital President David Tawil told Fox Business.
"Simply from supply and demand dynamics, we are going to have a much, much higher oil and gasoline environment," Tawil said on FOX Business’ show on June 16 adding that he is expecting the prices to soar by the end of this year.
"I think that oil -- not only from an inflationary standpoint but also from a demand standpoint -- is certainly in a place where it is going to rise consistently and considerably now into the end of the year," the energy expert told host Maria Bartiromo.
Brent crude oil futures dropped by 74 cents, or 1%, to $73.65 a barrel by 0103 GMT after reaching its highest since April 2019 in the previous session, Reuters reported. U.S. crude oil futures fell by 69 cents, or 1%, to $71.46 a barrel, after reaching its highest since October 2018 the previous day.
Tawil added that he expects the oil price to touch $100 per barrel by the end of 2021.
According to Tawil, the demand is surging with the reopening of economies while supply shortages remain.
"With open restrictions coming off throughout the developed world, travel and consumption terms of services are going much, much higher," Tawil said.
Moreover, environmental concerns are also factors contributing to supply shortages, he added. A Dutch court had ordered Royal Dutch Shell to cut its carbon emissions by net 45% by 2030 compared to 2019 levels in a landmark case brought by climate activism groups, which hailed the decision as a victory for the planet.
"Shell is selling all of its Permian Basin assets," Tawil said on the show. "The oil majors are trying to get out of the big oil game as quickly as they can," he added.