As the cost of oil rises, one portfolio manager believes prices will climb to US$100 per barrel.

David McAlvany, a portfolio manager and chief executive officer of McAlvany Financial Companies, said in a Thursday interview with BNN Bloomberg that the supply side of the oil market appears to be “pretty constructive” for crude oil.

He added that efforts by OPEC+ to reduce oil output have been “fuel to that fire.” 

McAlvany said there has been widespread interest in what will happen with the demand side of the market amid global economic uncertainty. 

“The demand side has been a huge X factor, and there's a little bit of relief on the demand side, but an exaggeration on the supply side, I think that's what's brought us to $90,” he said. 

“Clearly, we can march to $100. It looks like the market wants to do that.” 

On Thursday, West Texas Intermediate (WTI) oil prices reached $90.56 per barrel. That figure has risen from about $67 per barrel in June. 


Within the oil and gas sector, McAlvany said he sees “pockets of value” that may be of interest to investors under the right circumstances. 

“Devon Energy certainly is of interest as something that may play catch up. If you're looking at the pure-play natural gas, we like Chesapeake Energy. For something that is not quite as rodeo-esque, Williams Companies is a great play in natural gas,” he said. 

“These are portfolio companies that we've owned for a long time and will add to on a discount.”