Brent Crude Oil Price Could Hit $140 This Year

SEATTLE (Oil Monster): According to leading commodity hedge fund manager, Pierre Andurand, the brent crude oil price could surge higher to hit $140 per barrel during the current year. The global benchmark is expected to soar, primarily aided by rising demand from China, he noted.

Pierre Andurand said that the reopening of China, following end of intermittent spikes in Covid-19 cases, will result in more oil demand growth than expected. This acts as the basis for the bullish price forecast, he added. The market may take at least a couple of months to recognize the scale of the demand surge from that country.

Earlier, Goldman Sachs too had predicted Brent crude oil price of $105 per barrel in 2023, driven by ongoing production challenges and rising Chinese demand. Also Morgan Stanley had predicted jump in prices to $110 during the current year. In contrast, JP Morgan, in its recent report, had downgraded the benchmark prices to average around $90 per barrel in 2023, saying that the sanctions are unlikely to have a major impact.

The technical indicators suggest a bearish short term market for Brent. It could retest the lower side of $70 in the near term. However, a major move above $90 will signal bullish trend.