Opinion: November 29, 2021. Could Oil Reach US$ 150 in 2023?

According to JP Morgan, the price of oil can reach a spike on US$ 150 in 2023. (Also a spike of US$ 125 in 2022). The main reason for this is the lack of spare capacity of the OPEC countries. OPEC used to have a spare capacity of 14% of their usual oil output, now it is only 4%

What this means is that if an event occurs and more oil demand is needed, the oil barrels will not be necessarily there. As an average, the oil prices will fluctuate between US$ 80 and 90, but the overshoots can be significant.

Oil at US$ 150 will mean average gasoline prices above US$ 5.00 per gallon.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.