31.05.202114:04 Forex Analysis & Reviews: Oil to hit $ 80 by the end of the year

Many expect OPEC to stick with its previously agreed production schedule, which means that from July 2021 to April 2022, the volume of production cut will be 5.8 million barrels per day. Meanwhile, output will increase by 2.1 million bpd in July, thanks to stable oil prices.

And even though the group closely monitors the oil market, unexpected scenarios may still occur. But the possible increase in Iranian oil should not affect the market and OPEC's cuts, because the expected surge in demand will offset excess supply.

In short, OPEC plans will not be disrupted because demand is recovering much faster than expected. And according to projections, demand will reach as high as 6 million bpd in the second half of 2021.

Considering this, Goldman Sachs said Brent will hit $ 80 by the end of the year.

The latest Commodity Futures Trading Commission (CFTC) data also reports that long positions in crude rose 636,998, which is 11,939 higher than the previous week.

Production in other countries (not members of OPEC) is also recovering, and is expected to grow by 620,000 barrels per day.

And by 2022, output is projected to shoot up, especially in the United States, Brazil, Canada and Guyana. Meanwhile, production will decline in UK, Columbia, Malaysia and Argentina.