He said: “Despite rising markets last year, energy share prices remain subdued.” He added that demand for oil would continue to rise until 2030. “Demand will be stronger for longer and oil companies can use their profits to invest in renewable energy projects.”
UBS, an investment bank, said the price would fluctuate between $80 and $90 this year. Prices could rise even higher if there were political events in oil-producing regions such as Libya, Venezuela, Nigeria and the Middle East.
A lack of drilling has depleted oil stock, according to UBS. Supply issues have been exacerbated by pressure from investors for firms to focus on clean energy, all underpinning the price, the analysts said.
Energy shares benefit when inflation and interest rates are rising as they pay out huge sums via dividends and are relatively cheap to buy when accounting for how much profit they produce.
