$90 per barrel for Scotland’s oil by 2020

Source: John Robertson per barrel for Scotland’s oil by 2020

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We’ve seen predictions of a return to $70 per barrel already. Expert after expert has emerged with increasing estimates. Even the more conservative corporations themselves are confidently investing on the assumption that $50 is secure for some time ahead. Now we have this:

 ‘The fundamentals of the global supply-demand relationship are favoring higher oil prices. When it goes up it’s going to go up for an extended period of time. I think it can go back to $90, not in six months but over a couple of years.’

This is from Canadian CEO Jean-Guy Desjardins who see a more general recovery in the world economy justifying this demand for increased oil demand and thus prices. Personally, I think it’s also a recognition of the huge demand coming from the developing markets in Asia where a growing middle class has the increasing expectation of being able to own a car. See, for example:

China increases imports of Scottish oil from 8 to 38 million barrels in only 4 months

https://www.energyvoice.com/oilandgas/142342/ceo-called-canadas-stock-bottom-sees-90-oil-2020/