Oil is trading at a new high being the world economies are coming back. And OPEC is strategizing to get back record profits due to the losses the Pandemic incurred to them. And the fixation on alternative energy is shifting the future oil exploration as well. Many big oil companies are now devoting more money and time to future energy over current energy. Which only means a tighter supply is playing out as the world changes direction from oil.
Oil Price Hits Pandemic High as Investors Bet on Green Energy
Some investors are wagering that Wall Street’s preference for green energy will depress spending on oil extraction, setting the stage for supply shortages and higher fuel prices.
The bets come as money managers
line up trillions of dollars for wind, solar and other renewable programs and expenditures on oil projects tumble. The drop in fossil-fuel spending is becoming so severe that energy companies could struggle to quench the world’s thirst for oil, some analysts say.
Crude is still expected to remain in high demand over the next decade to make transportation fuels and petrochemicals used for plastics and other household products. U.S. consumption has
surged lately following the worst of the coronavirus pandemic, and output cuts by the Organization of the Petroleum Exporting Countries have given prices a further boost.