Oil could hit $150, sending 'shock through system,' says top shale CEO - MarketWatch
Oil could hit $150, sending 'shock through system,' says top shale CEO - MarketWatch
“‘That’s going to send a shock through the system.’”
That’s Doug Lawler, chief executive of Continental Resources, the shale-drilling giant controlled by billionaire Harold Hamm, telling Bloomberg News on Monday that crude prices are set to remain elevated and could press to the $120- to $150-a-barrel range without new production.
More price pressure is coming, he said, unless policies are put in place to encourage more output.
West Texas Intermediate crude CL00, -0.17%
CL.1,
-0.17%
, the U.S. benchmark, edged back below $90 a barrel on Monday but remains up more than 34% from its 52-week low of $66.74 hit on March 17. Brent crude BRN00,
+0.11%
, the global benchmark, has rallied 30% from a 52-week low of $71.84 a barrel set on June 12.
Lawler said he thought oil “absolutely” would hit the $100-a-barrel threshold and that he expects to see continued volatility in the $80- to $100-a-barrel price environment.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.