Oil projected to hit $100 per barrel
Here is great news for oil producers and suppliers. According to forecasts, oil has every chance of hitting new multi-year highs and reaching the level of $100 a barrel in the near future. The energy market has not seen such values for quite a long time. Therefore, the forecast may seem unrealistic and hard to believe in. However, a closer look at the fundamental factors that determine crude prices explains such optimistic estimates. Bank of America is among those who see oil spiking in the near term. Experts project a rapid rise in oil prices as soon as next year. In the second quarter of 2021, oil may easily reach $70 a barrel and then surge even higher. These expectations are supported by an improved fundamental background and a launch of global monetary stimulus programs. The bank expects Brent crude to trade at $60 a barrel in 2021 which is $10 up from the previous estimates but still $5 below the current price level. Earlier, Goldman Sachs has raised its forecast for Brent to $75 a barrel in the third quarter of 2021.