Oil to hit $80?

[Adam Montana]

Oil Price: $80 a Barrel Is On Its Way, Says Analyst

Published in Oil Industry News on Wednesday, 22 June 2016

Traders reportedly remain bearish over the oil price in the near term amid concerns that the market is oversupplied, but there are signs some investors are lining up investments into the sector amid predictions prices could jump to more than $80 a barrel for the first time in more than a year.

The benchmark Brent crude price on ICE Futures Index closed at $63.34 a barrel yesterday, a rise of 32 cents, after a day in which it had been traded down by $1 at one stage against a backdrop of mounting concern over the situation in Greece, according to Reuters. The price has remained stable for weeks at around $60 as traders weigh current overproduction against increasing demand, the Wall Street Journal says.

Reuters quotes traders who remain pessimistic on the near-term outlook for oil, as a supply surge for gasoline in particular earlier this month continues to work its way through the market.

Others, however, are more optimistic about the medium-term prospects. The Daily Telegraph yesterday cited comments from Insch Capital Management, a Swiss hedge fund, which is planning to ramp up investments into the sector as a result of its view that the market is actually oversold and could be trading at $80 a barrel by the beginning of next year.

The paper provides forward projections from five analysts, all of which are predicting price rises by the end of the year. The forecast being used by Insch is an outlier, though; Citigroup is predicting relative parity at $65 by the beginning of 2016, and Commerzbank, Nomura and Wells Fargo expect between $70 and $75.

Canadian Bank RBC is alone in predicting $81 a barrel, which would be the first time the price had breached the $80 mark since it fell through it during its long nosedive in October last year.

Insch is not alone in its view that there is value to be had in oil investments, with an article in the FT today suggesting last month was the most active for merger and acquisition activity since December, excluding the behemoth buyout of BG Group by Shell, which is valued at £47bn and was launched in April.

Financial backing from lenders appears to be abundant, with the current sticking point apparently high takeover valuations, which according to Dealogic data imply an oil price in the order of $83 a barrel. Most seem to consider these prices, including that paid by Shell, to be excessive.

 

Link: http://www.oilandgaspeople.com/news/8901/oil-price-80-a-barrel-is-on-its-way-says-analyst/

[EagleEye]

$80 per works for me Adam...let's get it on Oil Industry !!! 

[Freedomwish]

HCL!! HCL!! HCL!! GOOOOOOOOOOO HCL!! 

[MillieChatham]

It IS all about the oil! HCL and RV!!!!

[King Bean]

Still betting that "if" it gets to $80, all the news coming out of Iraq will still include officials asking for the rest of the world to pitch in and help them out of their financial woes. Arms outstretched, palm open. Gimme gimme gimme.

[millionaire in training]

We new that this was part of the game plan....... So let the games begin.....Next up ....HCL...RV   

[Nelg]

Bring it on!!!  Would love to wake up at the close of Ramadon and hear that the HCL is reality.  Great news.  

[ChuckFinley]

If it takes $80 to get an RV, you have my vote. 

[Laid Back]

At $80 per barrel of oil Iraq will have a BIG surplus.!

Go HCL 

Go oil production 

Go increase exchange rate

Ps; Iraq still need security and stability 

[SnowGlobe7]

You are right LB...as long as most (we will never get all) of the corruption out of Iraq

The corruption is what I have my eye on at this time....Abadi is doing all he can to rid Iraq"s government of the cheaters.

I think as each new appointment that Abadi makes..the higher the oil could SAFELY go!

 

 

 

[balkanbob]

We  all have been waiting to long. Not always patiently. Do it  and go RV. Sill waiting.

[Candy01]

5 hours ago, ChuckFinley said:

If it takes $80 to get an RV, you have my vote. 

MINE TOO!!

 

[skeetdog]

Thanks Buzzy....80 bucks a barrel would double the projected budget at the present adjustment of 40 bucks a barrel...Twice as much income on oil and the reduced expenditures on fighting terrorism in the future ought to free up more money than I can count...Although, I do have some money that needs freein' up that's within my ability to count.... 

[gregp]

I loved the 80's.

[sandfly]

Thanks adam

[SocalDinar]

It seems that OPEC has lost control of pricing.

 

Thanks for the article