Oil prices are headed to $150 a barrel as energy demand continues to outpace supply, JPMorgan energy strategist says

Christyan Malek of JP Morgan said that oil prices are still headed to $150 a barrel.

The price of crude oil rose 1% to $94 a barrel, but is still well off its high of more than $130 a barrel in March.

Some analysts have reduced their oil price outlooks, but the price target of $150 a barrel is still being maintained by JP Morgan.

He said that companies were under investing in future production because of the high oil prices. The US rig counts have begun to decline again.

The majors are not among the companies that should invest in future production. They're kicking the can down the road in order to tighten up the basics.

Saudi Arabia increased production to over 11 million barrels a day last month. If domestic companies didn't step up, that would make it hard to keep up with demand.

It has to be more than one organization that fills in the deficits when necessary. He warned that there will be a structural deficit that can't be managed or met quickly enough.