Oil Prices Set for New Boom After 2035 on Demand, Rapidan Says

As we look ahead to the next decade, the oil market is poised for a significant shift. According to Rapidan Energy, oil prices are set for a new boom period from the middle of the next decade, driven by continued demand growth in China and elsewhere. This prediction challenges the previously held belief that global oil demand would peak by 2030.



Rapidan's analysis suggests that world oil consumption will continue to grow until 2050, even with varying levels of electric vehicle (EV) adoption. This persistent demand, coupled with a structurally short supply side, will lead to a new boom in oil prices from the middle of the next decade. As expectations of a 2030 demand peak recede, spare capacity dwindles, and prices enter a boom cycle.

This projection raises important questions about the future of the oil market and the role of OPEC in managing prices and market volatility. With dwindling spare capacity, OPEC's ability to respond to sudden supply disruptions or increased demand may be limited, potentially leading to higher price volatility.



As an investor, I find this outlook intriguing. While the energy sector has been a focus of mine, the potential for a new oil boom post-2035 presents an opportunity to reassess my portfolio. I've always valued companies with robust management and enduring business models, and this development could signal a shift in the market dynamics that favor these types of investments.

In conclusion, Rapidan's prediction of a new oil boom after 2035 on continued demand growth is a compelling development for investors to consider. As we navigate the complexities of the energy market, understanding the potential consequences of a sudden supply disruption with dwindling spare capacity is crucial. By staying informed and adaptable, we can position our portfolios to capitalize on the opportunities that lie ahead.