Oil prices to hit $100 per barrel amid looming crisis, energy expert warns
Maglan Capital President David Tawil says oil will rise ‘consistently and considerably now until the end of the year’
Maglan Capital President David Tawil on what to expect from oil prices.
Maglan Capital President David Tawil is expecting an "oil crisis within the next three years" due to "incredible" demand and pressure on the supply side.
"Simply from supply and demand dynamics, we are going to have a much, much higher oil and gasoline environment," Tawil said on FOX Business’ "Mornings with Maria" on Wednesday.
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The energy expert also said he expects oil prices to hit $100 per barrel before the end of 2021.
West Texas Intermediate crude oil, the U.S. benchmark, hit $72.10 a barrel on Wednesday morning, the highest since October 2018. Brent crude, the international standard, was more than $74.00 a barrel, the highest since April 2019.
"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," Tawil told host Maria Bartiromo.
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David Tawil, president of Maglan Capital, said he expects oil to rise 'consistently and considerably' through the end of 2021.
The International Energy Agency on Friday urged OPEC and its allies to increase production to pre-pandemic levels at a faster pace than planned. The group earlier this month announced a production increase that would have output at 5.8 million barrels per day below pre-COVID levels.
Tawil pointed out that demand is rising as the world reopens following the coronavirus pandemic.
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"With open restrictions coming off throughout the developed world, travel and consumption terms of services is going much, much higher," Tawil said.
He went on to say that environmental concerns are also a factor, pointing to a Dutch court ordering Shell to "cut its emissions massively."
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"Shell is selling all of its Permian Basin assets," Tawil said. "The oil majors are trying to get out of the big oil game as quickly as they can."
Between shareholder pressure and government pressure, "supply is coming offline very quickly," he added.
FOX Business’ Jonathan Garber contributed to this article.