Oil prices could approach $100 per barrel in the coming years as firms struggle to maintain current production levels, a top hedge fund manager argued on Monday.
ValueAct Capital Management's founder and CEO Jeffrey Ubben said, as many companies cut labor forces, keeping up drilling activity will become "very difficult." The slowdown in production could drive crude to $100 by 2019, he said. On Monday, crude settled under $40 per barrel.
"People say it's maybe going to go to ($55 per barrel) and hang out there. No way," Ubben told CNBC's "Closing Bell." He also backed embattled drug company Valeant, as it seeks to navigate federal investigations, restive shareholders and a stock price that's wilting under all the pressure.
Crude's brutal slump has heaped pressure on U.S. oil and gas producers. Beset by credit crunches and falling oil, these companies are finding it difficult to continue to churn out the same amount of oil that has sent U.S. production surging to its highest levels in decades.