Oil prices could ‘very easily’ top $100 a barrel, says former U.S. energy secretary

Former US Energy Secretary Dan Brouillette warned CNBC that oil prices might “very quickly” approach $100 per barrel due to the failed OPEC+ talks.

He told CNBC’s Hadley Gamble, “You could very well see oil reaching $100 a barrel – perhaps even higher.”

On the other hand, it’s “equally possible” that prices will fall.

“You may have a collapse of oil prices if there isn’t any output agreement, and areas tend to go off and do their separate thing or do their production,” said Brouillette, who served as the United States’ energy secretary from 2019 to 2021.

Last week, OPEC and its partners, known as OPEC+, disagreed on oil output. Another attempt to restart talks on Monday failed, and the meetings were postponed indefinitely.

The oil alliance, which comprises Russia, has suggested boosting supplies by 400,000 barrels each day from August to December 2021 and extending the cutbacks until 2022. OPEC+ agreed last year to cut output by around 10 million containers through the day of May 2020 to each end of April 2022 to deal with weaker demand due to the epidemic.