Oil market experts have warned of a supply crunch up ahead in the not too distant future. The supply crunch could happen as early as next year which could lead to price shocks.
HSBC analysts have warned that demand for oil will help balance out the oversupplied market by year's end. But as demand continues to climb against a backdrop of low investment in new reserves, the global market runs the risk of supply shocks and soaring prices within two years.
Demand is not expected to peak until 2040 (a wee bit away yet!) by which point the analysts said “ the world could need to replace over four times the current crude oil output of Saudi Arabia, just to keep output flat.”
Stalker ain’t too worried about what is happening down the line in 2040- that’ll be someone else’s problem!