Increased demand for crude oil has pushed prices to new highs. Russia is now being forced from the global commodity market, resulting in demand significantly outstripping supply. One of the leading producers of crude oil cannot take advantage of soaring prices - it now has to sell the commodity at a heavy discount through quasi-legal schemes.
Mark Wirth, the CEO of Chevron, pointed at strong demand for crude oil. “We’re still seeing real strength in demand. International air travel is the strongest since before the pandemic. So, there are a lot of signs that demand continues to be very strong and demand, typically in our industry, moves faster than supply in both directions. We saw that in 2020, and we’re seeing that today,” Wirth said.
An outlook by Bank of America predicts that oil prices could surpass $150, well above the all-time high of $147.5 per barrel.