Will $60 oil be the new normal?

Will $60 oil be the new normal?

The upward trend in oil prices are expected to strengthen in coming weeks as stronger demand outlook and signs of economic recovery in China and the United States offset rising Covid-19 infections in some other major economies, according to latest reports. Energy experts and analysts see a $60-per-barrel price as the new normal and said crude prices may shoot as high as $80 during the third quarter of 2021 on a near-term demand recovery, supply discipline and higher GDP growth for the global economy. Last week, crude prices jumped the most since late March with declining US crude stockpiles and rising fuel demand, providing the catalyst needed for the breakout of a nearly month-long tight price range. 'We are net bullish on the week ahead, with attention turning to the data front and on signals of whether higher than expected physical demand stemming from reopenings continues to meet a constrained supply response, said Ehsan Khoman, director and head of Emerging Markets Research for Europe, Middle East and Africa at MUFG Bank. Crude demand picks up Energy experts and analysts said the upward revision in oil demand by the IEA and Opec marks a change of tone