On Thursday’s “Mornings with Maria,” Maglan Capital President David Tawil claimed that, in terms of oil supply, the rush for the exit doors is getting profound amid high demand with the reopening of economies, which might lead to a catastrophic oil crisis in the world. For the previous few months, the energy expert has been positive on oil, saying on “Mornings with Maria” in June that he expects oil prices to exceed $100 per barrel by the end of 2021.
He told anchor Maria Bartiromo on Thursday that he still feels his prediction is correct and that it will happen sooner rather than later. The U.S. standard, West Texas Intermediate crude oil, was unchanged at $70.30 a barrel on Thursday morning. The contract rose from $2.88 to $70.30 the day before. Brent crude, the benchmark for international oil prices, rose 25 cents to $72.48 a barrel. It grew from $2.88 to $72.23 in the previous session. Oil prices soared to their highest level in more than six years earlier this month.
WTI soared as high as $1.82 to $76.98 per barrel on July 6, the most since November 2014, before reversing course. For the first time since October 2018, Brent crude oil, the international benchmark, approached $78 a barrel. Later in the exercise, both energy components flipped into negative territory.
As a result of the Biden administration’s push for clean energy, many investment firms are shifting their focus away from fossil fuels and environmental, social governance, and corporate investing, leaving little funding for fresh oil discoveries. Oil, according to Tawil, is on the rise beyond inflation due to a supply-demand imbalance that will persist in the short and medium-term. He argued that the COVID-19 Delta variation “is not going to slow things down,” particularly in the Western World and prosperous economies.