Oil could hit $80 per barrel by the end of 2018

A large part of the market participants are of the opinion that 2018 will be one of the best for raw materials, taking into account the good prospects for the world economy and the record levels of consumption. Looking at oil, and appreciating all OPEC efforts to cut production, as well as all positive prospects for global consumption, commodity analysts believe oil is likely to reach $ 80 a barrel. Last at these prices, black gold was traded in 2014, during the fall, after which WTI reached prices below $30. for a barrel.

Looking at the positive facts that move the oil upward, it seems that the rise to $80 will be almost seamless. But is this so? The oil market remains a big question mark, and this is the US export, which has witnessed strong and steady growth in recent months. It largely compensates for OPEC efforts to cut production, and it does not appeal to Russia, as the United States is taking on an increasing share of the oil market. In addition, OPEC agreement significantly harms weakly-developed exporting countries in the alliance, and this calls into question their involvement. It can not be ruled out that they break the agreement and increase their exports significantly in order to cover their budget deficits.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

Read more:

• Oil fundamental and inertia can push prices to new highs
• Goldman Sachs: “Gold is a better hedge than oil in current market conditions”
• Golden years for Gold
• The end-of-year gold rally continues at full speed
• Gold goes over $ 1,500, big players with estimates for the next year