Former U.S. Energy Secretary Dan Brouillette said on Tuesday that oil prices may very easily hit $100 per barrel in the aftermath of the failed OPEC+ talks.
Brouillette said, “You could very easily see oil hitting $100 a barrel — potentially even higher.” On the flip side, he also said that it is equally possible that prices can collapse too.
“If there isn’t any agreement on production, and countries tend to go off and do their own thing or do their own production, you could have a collapse of oil prices,” said Brouillette.
On Monday, another effort to resume talks between OPEC+ countries failed, and discussions were put off for an indefinite period of time.
The energy alliance, which also includes Russia, had sought to increase oil supply by 400,000 barrels per day from August to December 2021 and it proposed to extend the time period of cuts until the end of 2022.
The UAE was supportive of the deal to increase oil supply but is opposed to the terms of the extension.
Prices of oil increased to three-year highs following the failure of those talks on Monday. On Tuesday, they soared even higher.
Oil expert Dan Yergin warned that Oil prices nearing $100 would destroy demand, and it would not be in the interest of countries.
