It is predicted that it is only a matter of time before international oil prices, which are soaring above the highest level of the year, surpassing $100 per barrel.
The spot price of crude oil in some regions has already exceeded $100 due to a shortage of crude oil supplies in the aftermath of production cuts in Saudi Arabia and Russia, and some argue that the current oil price level is excessive.
Amid variables such as the supply of electric vehicles, voices that long-term demand for crude oil will expand more than expected are also gaining momentum.
"Time issue to break $100" vs "Not sustainable even in the $90 range"
Traders and analysts are offering various analyses on whether or not it will surpass $100 per barrel.
Brent crude surpassed $100 for the first time in February 2008 following China's economic boom, and even after the Ukrainian war in February last year, it rose sharply to exceed $120 several times.
Mike Worth, CEO of oil refinery Chevron, told Bloomberg TV, "I think the price of crude oil will reach $100 per barrel."
Amrita Sen, chief analyst at consulting firm Energy Aspects, said, "I'm not saying it's going to rise above $100 on average, but it's absolutely so when asked if it can reach $100 for a short time," predicting a further rise in oil prices.
Some crude oil prices in the spot market have already exceeded $100, Reuters reported. According to the London Stock Exchange Group (LSEG), the price of Nigerian oil Qua Iboe exceeded $100 per barrel on the same day. Malaysian crude tapis also hit $101.30 last week, said Bairn Shieldrop, an analyst at Swedish bank SEB, in a report.
However, there are also many objections that the current level of oil prices is too high. According to Yahoo Finance, Citigroup's head of global raw material research said, "Except for Saudi Arabia and Russia, supply growth is faster than demand growth, so the $90 range is unsustainable."
An analyst at analyst Sebab told Bloomberg TV, "If Brent crude oil rises to $110-120 a barrel, demand for petroleum products is likely to be hit harder, and such a price level seems excessive."
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