There are many issues going on around the world that could have a material impact on the future of oil—both short term and long term, said Matthew Simmons, chairman emeritus of Simmons International.
Citing Iran’s presidential election controversy, Ukraine’s conflict over natural gas, Nigeria threatening to shut down its oil system, Venezuela’s current strike and Peru’s domestic unrest, Simmons said all the concerns around the world will have an “unbelievable impact on oil supplies.”
- Chavez: Venezuela hopes to sell oil at $100
“If one of these 4 or 5 things turned really ugly, prices can go way higher than we’ve seen,” Simmons told CNBC. “And if 2 or 3 of them happen at the same time, I don’t think there’s any normal ceiling on the price of oil.”
Simmons said although the level of demand is low, the odds of oil being stored for speculation is “extremely low.”