Oil Prices Hit $80 per Barrel as Demand Climbs in Advanced Economies

Oil prices are likely to hit $80 per barrel in the last quarter of the year in line with the expected rebound in demand, Reuters reported.

• Global investment firm Goldman Sachs believes demand will reach 4.6 million barrels per day by the end-2021, with most gains within the next quarter.
• Demand will be driven by increased mobility in the United States and Europe as more individuals are vaccinated, and restrictions are eased.
• Demand in developed countries will cancel out the slower consumption in Southeast Asia and Latin America.
• The Organization of the Oil Producing Countries and its allies are expected to suspend an increase in production in the second half.
• The suspension will offset the possible resumption in Iranian supply.
• President Hassan Rouhani last week said the U.S. was ready to lift sanctions on Tehran, prompting a decline in prices.
• Indirect negotiations between Washington and Tehran are scheduled to resume this week, but the potential nuclear deal still faces challenges.