Some of the world's largest oil traders are expecting prices to exceed $200 a barrel by the end of this year. Pierre Andurand, a hedge fund manager, said it may be because supplies will probably come from Europe from now on.
Andurand made his first prediction at $200 a barrel, saying it would be difficult for producers to replace Russian oil as it exits the market. He is not the only one who expect such prices, as RCMA Group Chairman Doug King said crude oil could rise to $200 before reaching $250 by the end of the year.
A little earlier this March, there was a forecast that the price of Brent would reach $200 by April. But it was probably a reaction to the US measures implemented because of the conflict in Ukraine, so now that initial shock has subsided, prices are likely to fall from their record highs. However, the upside potential remains significant because, according to economists, about 3 million bpd of Russian oil will leave the market, and such cannot be replaced quickly and easily.
