Crude oil prices jumped and stocks tumbled about two weeks ago after Iran fired an estimated 180 missiles at Israel in retaliation for the ground invasion of southern Lebanon. A warning from White House officials had been given that a strike was imminent. Price jumped from $70 per barrel to $74 per barrel. Price later rose to $78 on Oct 8, 2024 which currently stands as the highest price of crude oil in two months.
Global stocks tumbled as a result of the recent attacks. According to Reuters, Citigroup Inc made a forecast based on fundamentals. According to Citi, if producer group OPEC+ doesn’t reduce production further, the average price of oil could drop to $60 per barrel in 2025 due to reduced demand and increased supply from non-OPEC countries.
Our analysts on the other hand, see price rallying and our forecast is based majorly on the technicals. We see price rallying to about $90 per barrel before the end of 2025. Price of crude oil falling to $60 is not guaranteed from our analysis, we only see a rally to $90, as price is retesting the support level above $60 with the current price at $70.16. This retesting is momentum for an upward trend. But it all remains to be seen as this war unfolds.
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