Oil prices could see a big spike in the very near future.
That’s according to Tim Pickering, Founder and CIO of Auspice Capital Advisors.
He tells Mix News OPEC will be increasing their production by around 600,000 barrels per day in an attempt to raise global prices.
“I think we’re going to be dragged up by global demand. The crude we produce is very much in demand in the global refinery system and the U.S. produces light sweet crude, they need heavy sour to supply their refineries for better margins, and we got that crude.”
As of Friday morning, Canadian oil prices were hovering around $68 US a barrel. Pickering says prices could increase by $10.
“This doesn’t change the trajectory that we’re on, [OPEC] not bringing enough oil onto the market to change the balance and trends that we’re seeing, the trend we’ve been seeing is higher oil.”
If OPEC decides to add another 600,000 bbls/d, the remainder of the 1.2 million decrease in 2016, our oil prices could potentially see a drop.
“Do we have incremental supply problems in Venezuela and other places like Iran, if we do, then that may be a moot point. At this stage, we can only know what we know and what we know is the oil they’re talking about bringing back only covers what production is being lost on a global basis.”
Pickering adds our prices could remain high if we move forward with the Trans Mountain Pipeline expansion project – bringing oil to tide waters, accessing the global market.