Total’s CEO Christophe de Margerie said recent gains in oil prices reflect market anticipation of a supply shortfall within five years rather than current demand.
“If it was purely offer and demand, prices would be lower than the $60 we are seeing,” de Margerie said today in an interview with Bloomberg Television in New York.
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“The market is anticipating in the long term that there won’t be enough oil, some people would say speculating,” he said.
Oil has advanced 60% this year in New York on signs the global economy may be on the brink of a recovery, boosting consumption of fuel.
Crude oil dropped 70% in the second half of 2008 from its $147.27-a-barrel peak.
Crude oil futures for delivery in 2015 are trading near $85 a barrel on the New York Mercantile Exchange.
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By GlobalDataTotal’s CEO has previously said that supplies may fall short as soon as 2014 and oil producers must invest in new capacity to avoid a jump in prices, which have averaged $63 over the past six months, according to Bloomberg.
The International Energy Agency also said earlier this year that a drop in investments may result in a global oil shortage by 2013.
