Hedge fund manager Kyle Bass said Thursday that oil prices could rise “well north of $100” in 2022 as a lack of investment in the hydrocarbon industry meets a surge in demand as the global economy emerges from COVID restrictions.
“I think you should buckle your seatbelts,” the founder and chief investment officer of Hayman Capital Management said. “We’re going to see really high prices very soon.”
Bass explained that policies designed to fund the development of green energy sources have pulled capital away from oil development. As a result, the industry will not have enough capacity to keep up with demand as the COVID impact fades.
“You can’t just turn off hydrocarbons. It takes 40 or 50 years to switch fuel sources,” he said.
“The Fed doesn’t have the stomach for the market to drop. … If the market is down 20%-25%, I think the Fed stops raising rates,” he said.
“My personal view is that I don’t think they can raise short rates more than 100-125 basis points before they have to stop,” he added.
Bass also contended that the real inflation rate is actually running at 14%-15%, or even higher.
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While transitioning over a very long period of time to clean alternative energy. The 🌎 needs to replace 70% of current production over the next 18 years JUST TO STAY EVEN. High oil and gas prices are going to make life difficult for political leadership. @SaraEisen@CNBC
