Oil Went Below $0. Some Think It Will Rebound to $150 One Day.

Oil Went Below $0. Some Think It Will Rebound to $150 One Day.

Oil markets began the 2020s by nosediving below $0 a barrel for the first time. Investors and analysts are now trying to work out what the rest of the decade holds in store.

Some think the bust will set in motion a boom, predicting that investment in oil-and-gas production will dry up and propel crude prices back above $100 a barrel.

"That funding pressure is going to be massive. It's going to be really difficult for some of the producers to produce,“ said Trevor Woods, chief investment officer of Ohio-based hedge fund Northern Trace Capital. "We could hit $150 pretty easily by 2025.“



Others say the pandemic will sap fuel demand after the threat of contracting coronavirus has faded, cementing an era of cheap oil.





The debate over the long-term direction of the world's most important energy source is thorny. Oil markets have dozens of moving parts, making them hard to forecast.







In the long run, most analysts agree prices should gravitate to a level at which energy producers profit from making just enough crude to match demand. Covid-19 has made that calculation more complex. Investors are unsure whether the pandemic will permanently alter transport and consumption patterns, or