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Why crude could get to $US100 a barrel

William McInnes

The prospect of crude hitting $US100 a barrel at some point in the next few years seems suddenly possible, with a strong rebound in demand and projections of limited supply providing a bullish backdrop for the oil market.

The price of Brent crude has already risen 32 per cent since the start of the year, driven by optimism over the reopening of the global economy, but forecasters are expecting it to run further.

“I’m not sure we get to $US100 a barrel, but I can’t say we won’t. I think a fair bit has been baked in already but you never say never,” said NAB head of commodity research Lachlan Shaw.

“Certainly, in our bull case, we do see crude oil prices getting well up into the $US90s in the next few years.”

Craig Johnson, managing director of US investment firm Piper Sandler, said on Monday: “I could actually see a number that could be north of $US100 in the next six to 12 months from here,” he told CNBC. “To us, it looks like you could have more than 40 per cent upside to get back to the old highs in 2018.”