Citigroup expects oil to hit $ 85 soon

Citigroup Bank expected that the price of oil would soon reach 85 dollars a barrel, if the production of the alliance “OPEC +” does not increase.

A Bank report predicted that global oil demand would increase by about 1.5 million barrels per day, during the current July, and increase at a higher rate in August to exceed what is required. ‘it was in August 2019, before the Corona pandemic, with growing demand from the United States and China to exceed oil supply demand levels in markets.

The bullish momentum of oil came to a halt last week after the exit from the “OPEC +” meeting with no agreement on production levels. Crude oil posted its first weekly loss since May – despite rallying at the end of the week – with the deadlock raising fears that the alliance’s unity would break down and lead to a price war. The alliance was widely expected to recover more of the reduced production during the pandemic.

Oil is up more than 50% this year, as the introduction of a vaccine in major economies such as the United States accelerated the recovery from the pandemic.

However, the “City” report expected prices to fall over the next two years, given the expected rise in US production of around 400,000 barrels over the next year, in addition to the l increase in production in “OPEC +” countries. and Iranian.