Wall Street can’t keep calm after oil prices surged towards $80 a barrel for the first time in two and half years. Analysts now disagree on whether a return to $100 a barrel oil is upcoming.
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- Vaccine rollouts, easing of restrictions, and production cuts have seen oil jump at least 45% in the first half of this year, and analysts expect more potential surges in the coming months.
- With Brent crude futures trading at $75.76 a barrel on Friday, Goldman Sachs sees prices ticking above $80 in the third quarter.
- JPMorgan expects oil prices to reach $80 in the last three months of this year.
- Bank of America says Brent could hit $100 a barrel in the summer of next year, marking the return of triple digits oil for the first time in more than six years.
- Morgan Stanley’s Martijn Rats sees prices ranging between $75 and $80 up to the middle of 2022, warning that crude markets are seeking the price that destroys demand growth.
- Oil analyst Tamas Varga expects rising oil prices to continue due to falling inventories, with the strategist saying additional output from Iran “looks unlikely at the moment.”
- Some analysts see oil potentially trading below $70 a barrel as demand wanes and Iranian output enters the market.