Allan Small told BNN Bloomberg on Monday he attributed the recent period of low oil prices in large part to heavy pandemic restrictions in China that have slowed its economy -- but he said a rebound could happen fast as the country loosens its public health measures and internal demand for energy grows. China has slowly begun lifting some public health rules after the country was rocked by protests in recent weeks.
“I think you will definitely see the thirst for energy out of China and I think that will cause the price of oil to move significantly higher over the coming quarters,” said the senior investment advisor at Allan Small Financial Group in an interview. He said the rebound might not be as high $120, but predicted prices could reach $100 if shutdowns in one of the world’s largest manufacturing economies come to an end.
“I think you could see it definitely get into the mid $90s to $100 range, and I think that’s what a lot of investors are banking on.”Small presented the China reopening factor and dividends being offered by energy companies as a “good investment approach” at the moment, despite some unpredictability in the sector with the TC Energy’s Keystone pipeline system still shut down after an oil leak in Kansas last week.
The company hasn’t set a timeline for restarting the pipeline yet, but Small said it could happen soon, contributing to a higher oil price along with the China reopening.
Stop the fear mongering. Oil needs to go to below 50
Are they ever right
It “could”…. That’s how they get out of these useless forecasts 🤦🏻♂️
Or, it could retreat to $50 if there’s an outbreak
I'd like to see BirchcliffEnerg CEO Jeff Tonken interviewed (AndrewBellBNN ) - we have a massive polar vortex in the horizon.