There are more calls now for oil to head higher in 2018 on rising demand and OPEC production cuts
Forecasters are starting to look at oil hitting $80 per barrel after a bright start to the year, WSJ reports.
Byron Wien from Blackstone, puts WTI crude hitting $80 as one of the things in his ten surprises in store for markets for 2018. In an interview, he says that "demand is going to increase faster than supply as people are underestimating the expanding middle class in the developing world and their resultant demand".
Meanwhile, Citigroup also released a note this week saying that "the right combination of geopolitical crises could tip crude prices into the $70 to $80 range".
They add that "with supplies already so tight, any unexpected disruption could cause prices to surge".
Oil has been one of the top gainers so far in the commodity space with at 5.08% gain in WTI crude and 3.26% gain in brent crude to start the year. Currently, WTI crude is trading at $63.48, while brent crude is trading at $69.04.
