(Bloomberg) -- Oil prices could easily surge back above $100 a barrel next year as already-tight supplies could be further challenged by an increase in Chinese consumption, according to Global X Management.
China may add a meaningful amount of demand for the commodity, helping boost prices to about $110, Rohan Reddy, director of research at Global X Management, said in a Bloomberg TV interview. OPEC's reluctance in increasing production and a potentially more dovish Federal Reserve are also bullish drivers for oil, he said.
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Reddy said energy markets are set to remain volatile “both on the upside and downside” and that shares of pipeline companies, which stand to benefit from growing US oil supplies, are a good alternative for traders seeking protection from those wild price moves.
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