Citigroup expects the price of a barrel of oil to reach $85 soon, if OPEC+ production does not rise.
According to Arabiya Net, a report by the Bank expected that global demand for oil would rise by about one and a half million barrels per day, during the month of July, and to rise at a more rate during August to exceed What it was in August 2019, before the Corona pandemic, with the growth of demand from the United States and China to exceed the levels of oil supply in the markets.
Oil's upward momentum stalled last week after exiting the OPEC+ meeting without an agreement on production levels. Crude oil posted its first weekly loss since May - despite rallying at the end of the week - with the stalemate raising concern that alliance unity could break and lead to a price war. It was widely expected that the alliance would recover more of the production that had been curtailed 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 has accelerated recovery from the pandemic.
However, the Citi report expected a decline in prices over the next two years, in light of the expected rise in US production by about 400,000 barrels during the next year, in addition to the increase in the production of OPEC + countries and Iran.
