Oil market expects «parabolic» movement, prices may reach $150 per barrel – head of Trafigura

10:02 10.06.2022 5428

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 World oil prices could show a «parabolic» movement this year, rising to record highs and triggering a slowdown in global economic growth, said Jeremy Weir, head of Trafigura, one of the world's largest independent oil traders, Interfax reports.

 The current state of energy markets is critical as sanctions on Russia exacerbate supply shortages created by years of underinvestment in the sector, Weir said at the FT Global Boardroom on Tuesday.

 «The situation is critical,» he said. «I really think we're in trouble for the next six months, (…) when it comes to this parabolic state, the market can move and prices can really go up».

 A parabolic condition is commonly referred to as a situation where prices jump to record levels in an already rising market, the Financial Times notes.

 Weir added that he sees a strong possibility for oil prices to rise to $150 a barrel or more in the coming months as energy flows shift as Russia diverts oil exports from Europe.

 «If very high energy prices persist for some time, we will see a decrease in demand. It will be problematic to sustain such a price level and maintain economic growth», he said.

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