Oil prices shot up on Monday morning by more than 5%, with OPEC and non-OPEC meeting in person in Vienna this week, while one oil analyst predicts that oil could soon reach $100 per barrel.
The price of a WTI barrel climbed 5.4% on Monday at 9 a.m. ET, to $83.78 (+$4.29). Brent crude climbed nearly 4.78% to $89.21 (+$4.07).
Stephen Brennock, senior analyst at PVM Oil Associates in London, said that an uptick in trading activity “coupled with tightening near-term oil fundamentals could well push oil prices back to $100/bbl,” according to a research note seen by CNBC. That prediction comes as OPEC+ prepares to meet this Wednesday—in person—to discuss an oil production cut that could exceed 1 million barrels per day, according to sources.
“Those of a bullish disposition have endured a summer of pain, but a winter of hope and expectation is on the horizon,” Brennock said.
OPEC+ aren’t going to meet in Austria for the first time in years “to do nothing” Dan Pickering of Pickering Energy Partners told CNBC on Monday. “So there’s going to be a cut of some historic kind.”
While some sources suggest that OPEC+ is mulling an oil production cut that could exceed a million barrels per day, Pickering seems a more modest—but still effective—cut of around a half million barrels per day. Pickering sees this production cut volume “enough to support the market in the near term.”
Goldman Sachs shares this bullish view, and sees Brent ratcheting up to $105 per barrel within the next six months, with WTI hitting $95 per barrel by the end of the year, with a six-month outlook eyeing $100 per barrel.
By Julianne Geiger for Oilprice.com