Oil now trades around $85 a barrel, only a few dollars higher than a year ago. It has ranged between $50 and nearly $150 during the past five years.
|An oilfield near Los Angeles.|
“In three or four years, will the ability to produce the extra barrels needed be met? The answer is increasingly a question mark, and that pushes higher and higher the present values of the oil in the ground and the desire of holders of oil to add to their supplies,” Maxwell said.
Maxwell notes that current production is 88 million barrels a day, to which he adds global capacity of another 5 million barrels a day. He predicts that capacity will peak in five years at 95 million barrels.
Read more: Analyst: Oil Will Hit $300 in a Decade, Regardless of Egypt