One prominent energy investor says the world has never consumed more oil than it currently does, despite narratives of waning demand.

Oil prices have moved higher over the past three months, with West Texas Intermediate (WTI) oil prices was hovering at around US$87 per barrel at midday on Monday, up from a relative low point of about $67 per barrel in June.

Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, said in an interview with BNN Bloomberg that recessionary fears had been weighing on the demand outlook for oil – despite high consumption of the commodity.

“We've been fighting this narrative about weak demand due to a recession, which we've been hearing about for a year. We have never consumed more oil in history than we have today,” Nuttall said on Monday.

FALLING INVENTORIES

Additionally, OPEC+ has been “curtailing volumes,” Nuttall said, as oil inventories have hit their lowest levels since about 2017 and demand has reached record levels. Earlier this month, Bloomberg News reported that oil prices hit US$85 following efforts by OPEC+ to reduce oil output. 

Nuttall, who has been consistently bullish on oil, said he expects falling inventories will keep prices high. (that ok?)

“But because of recessionary fears, you had oil drifting,” he said. 

“As inventories continue to fall this year and next year, we think that will propel oil meaningfully higher.”