WTI Crude prices may be set for a 90-percent jump to $70 a barrel by the fall as U.S. oil producers may have “over-cut” production, Dan Eberhart, chief executive of Canary Drilling Services, told Markets Insider this week.
According to the manager of the drilling firm, U.S. oil companies have curtailed production too much too fast when prices collapsed, setting the stage for a “mini-supply shock” on the U.S. oil market.
Early on Friday, WTI Crude prices were rallying 4.38 percent to $39.05, as the market appears confident that the OPEC+ group will extend the current level of production cuts for one month after June at a meeting scheduled for Saturday.
According to Canary Drilling Services’ Eberhart, the extension will not matter much because the OPEC’s compliance with the cuts –which wasn’t perfect in May—will slip further.
“I see a case for West Texas Intermediate to approach $70 a barrel this fall,” Eberhart told Markets Insider. read more