Oil prices could soon soar toward $80 a barrel amid escalating concerns over falling output from one of Latin America’s biggest producers, Crescent Petroleum’s chief executive told CNBC Tuesday.
Speaking at the World Economic Forum (WEF) in Davos, Majid Jafar, CEO of the United Arab Emirates-based oil and natural gas producer, said prices could skyrocket over the coming months if a major producer — such as Venezuela — suffered a significant production outage.
“And over the next few years, because of the huge underinvestment we have had over the last few years, the concern is as global growth continues and the balance happens in the market … you could see a shock upwards in oil prices,” he added.
Oil prices rose Tuesday, lifted by robust economic growth data as well as ongoing supply cuts by a group of exporters including OPEC and Russia.
When asked where he expected to see oil prices trading by year-end, Jafar replied: “We could jump towards $80 (a barrel).”
Brent crude traded at $69.26 a barrel at around 08:55 a.m. London time, up 0.33 percent, while U.S. crude was seen at $63.87, up 0.5 percent.
Oil CEO warns of a shock upwards in prices over the coming months, predicts oil