How soon will oil quotes reach $70 a barrel?

According to analysts of Bank of America, the situation on the oil market looks much more stable now than it might seem at first glance.

"The continuing decline in the extraction of raw materials in Venezuela and Iran, combined with the reduction in production from OPEC +, allows us to expect attempts to break through oil prices in the direction of $70 per barrel in the short term," representatives of the financial institution said.

"However, more impressive growth in the cost of black gold is unlikely to be sustainable, since American manufacturers are not asleep, and for them, such a development is an extremely attractive opportunity in the struggle to increase market share," they added.

In turn, UBS specialists believe that the supply of black gold will continue to decline in the coming months, thanks to the implementation of the OPEC + agreement and strong demand. According to the bank's forecast in the medium term, a barrel of raw materials of Brent grade may rise in price between $70 and $80.

Barclays experts also maintain a positive attitude towards the prospects for the oil market. They expect that the average price of Brent crude oil will reach $ 70 per barrel this year.

"Despite numerous indicators of a slowdown in the global economy, the demand for black gold remains steady. We think that the main source of uncertainty for the oil market in the current year will not be the United States but the reaction of OPEC to the political decisions of the States, "Barclays said.

The material has been provided by InstaForex Company - www.instaforex.com