Oil prices may exceed $140 a barrel

According to a statement from hedge fund manager Pierre Andurand, the oil price will increase above $140 per barrel this year. In his opinion, this is possible after the complete removal of COVID restrictions in Asia.

Andurand expects that real demand can double the forecasts of experts. He notes that even if the global economy is not in its best condition, demand could grow by 4% (i.e. 4 million barrels per day). In 2022, the fund managed by Andurand himself had a 59% growth.

Andurand added that if no re-quarantines are imposed after Asia opens, oil prices will rise as well. In his opinion, the market does not realize how much demand can increase.

Andurand also noted that currently jet fuel demand is indeed lower than, for example, in 2019. However, this is only due to the fact that China has not fully lifted the COVID restrictions, and the rest of Asia has just begun this process.