Brace for huge oil volatility, U.S. trading group says – Reuters

Brace for huge oil volatility, U.S. trading group says – Reuters

LONDON, June 16 (Reuters) - Oil prices are likely to be extremely volatile in the next few years, driven by supply constraints rather than demand as financing for new production evaporates in favour of renewables, U.S.-based Castleton Commodities International said.

"You could see spikes to even higher than $100 a barrel, even $130, and you could also see it go down to $35 a barrel for periods of time going forward," William Reed II, CEO of Castleton, told the FT Global Commodities Summit. "The question is what happens first. Peak demand or peak investment?"

His comments echo those of European rivals who see a return to $100 per barrel oil as a real possibility. read more Oil has not been above $100 or even $90 a barrel since a sharp downturn in 2014 when the rise of U.S. shale oil convulsed global markets.