Bullish Oil Price Predictions Should Be Treated With Caution

20 Apr 2017   Prices

Despite prices levelling off and a continued resurgence in American production, bullish predictions on future prices are stacking up as analysts weigh in on where oil is headed. Citigroup Inc. has predicted that oil will rally past $60 per barrel by the end of this year. Citi analysts expect shale to come “roaring back” to life thanks to 2017’s higher prices, while further OPEC production cuts will offset increased output from the U.S. That should produce the conditions necessary for oil to break through past $60 by January 2018, according to Bloomberg . The Citi prediction came shortly after encouraging words from Barclays, Again Capital and Bloomberg indicating a “great rebalancing” was in progress and that prices would likely recover in the near-term. These predictions are bullish compared to those of Goldman Sachs, which predicts prices hovering around $50 and stabilizing there, while the International Energy Agency (IEA) worried […]

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