03.05.202113:16 Forex Analysis & Reviews: Oil to cost as high as $ 85

Many analysts are confident that Brent will cost $ 70-75 by the end of this year, or reach as high as $ 85.

This is because the recent events in the oil market has driven demand up so much that prices rebounded by about 15%. Subsequent lows and highs have also reached higher and higher values.

In fact, just last month, a massive sell-off began after oil hit $ 67.50. And now, the price has returned there again, trying to break away from the moving average.

Considering this, analysts believe that in the long term, oil has all the chances for stable growth, in which a significant rollback will reduce local overheating and open up opportunities for further price hikes.

For traders not prone to impulsive decisions, the clear evidence for this scenario is a break above $ 70. If such happens, Brent can cost $ 70-75.

And if the global economy continues a stronger and more rapid recovery, and central banks maintain soft monetary policies, price could reach as high as $ 85.

However, if supply increases again, oil has no choice but to collapse once again.

At the moment though, output is still restrained, thanks to the cuts imposed by OPEC since last year. But many countries, especially those who are very much dependent on oil, are having a hard time bringing up their economies.

If producers begin boosting their production, the upward potential of oil will be limited. This means that oil may not be able to reach higher than $ 80 anymore.