Crude oil prices could hit $100 amid global supply shortages, Russia’s export ban: Mark Fisher
2023.09.21 15:35
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Mark Fisher, the founder of MBF Clearing Corp., forecasted in a CNBC interview on Thursday that prices could surpass $100 per barrel due to global supply shortages. This prediction was made on the same day as Russia announced an immediate temporary ban on diesel and gasoline exports to all but a select group of former Soviet states.
The Russian decision comes ahead of the winter heating season and follows Saudi Arabia’s move earlier this summer to reduce its crude oil output by an additional 1 million barrels per day. This reduction could potentially affect U.S. gasoline prices.
The cut in Saudi Arabia’s production is in addition to the existing cuts agreed upon by the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, which are set to continue until the end of 2024.
Fisher drew parallels between Saudi Arabia’s attempts to exert control over oil prices and the stock market during Alan Greenspan’s tenure as Federal Reserve Chairman. He suggested that a similar dynamic could be at play in the energy markets, with a base price of around $75 to $80 per barrel.
Global oil prices experienced a drop in May amid concerns about decelerating global economic growth following interest rate hikes by central banks in major developed economies. U.S. West Texas Intermediate Crude prices fell to a recent low of $68.56 per barrel. However, they bounced back swiftly over the summer following the announcement of production cuts.
On Thursday, following Russia’s export ban, West Texas Intermediate for November delivery was trading at $89.97 per barrel, up 0.3%. Meanwhile, , the global benchmark, stood at $93.66 per barrel.
Rising oil prices in the U.S. have contributed to inflation data this summer. Federal Reserve Chairman Jerome Powell acknowledged this trend on Wednesday, stating that the central bank is keeping a close watch on it.
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