WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Rothman: Oil Prices to Surge To Over $85 By End of 2016

Oil Barrels

Oil prices could surge above $85 a barrel by the end of this year, according to analysis by Michael Rothman, considered to be one of the most astute oil experts on Wall Street, CNBC reports.

Rothman heads the research firm Cornerstone Analytics, through which he advises governments from all over the world, the oil-rich Saudi royal family and its affiliates, and energy firms.

Barrel prices hit a 13-year low on the 11th February this year. Last week, they surged to above $50—the first time they have done so since July last year.

The Nasdaq price for a barrel of Brent oil stood at $50.20 on Monday.

The Qatari head of the Organization of Petroleum Exporting Countries (OPEC) has said previously that new investment in the sector requires barrel prices to rise above $65.

OPEC has made no strides in accelerating price growth over the past two months.

Two separate pushes to reduce oil production in an effort to force prices upwards have been rejected by Saudi Arabia, who fears Iran’s rise if it does not join the proposed freezes.

Russia, the 13-member bloc’s rival, said OPEC has “practically stopped existing as a united organization” before the proposed freezes failed to get approved for a second time on 2 June.

Iranian officials have made it clear that they will not participate in production halts as the government works to restart the country’s economic engine. International sanctions lifted earlier this year had locked Iran out of the global oil trade for years.

Related: Oil Supply Disruptions Highest In Five Years

"Under the present circumstances, the government and the Oil Ministry have not issued any policy or plan to the National Iranian Oil Co. (NIOC) towards halting the increase in the production and exports of oil," Rokneddin Javadi, who heads the state-run National Iranian Oil Co. (NIOC), said last month.

Recent reports suggest the Shiite-majority country is on the verge of achieving pre-sanction export levels, with its shipments reaching European and Asian nations.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Chad Schieck on June 14 2016 said:
    Spot on John Scior! I was thinking the exact same thing.

    I always cringe when I hear anything that has "...experts on Wall Street...".

    It would be nice to see some truth in journalism; something more like "...in an effort to manipulate the price (my like OPEC) and create a profit for their firm, one of many alleged "Wall Street experts" is predicting oil to hit $85/bbl by Christmas...".

    That might paint a clearer picture and people would ignore the rest of the rhetoric in the article.
  • zorro6204 on June 14 2016 said:
    "Mike Rothman, founder of Cornerstone Analytics is calling for $85 oil by year-end, citing research that shows oil will go from being in a slight supply surplus to a deficit in the coming months. “The whole situation changes pretty significantly after this quarter,” Rothman told BNN in an interview. “We actually go into a deficit [of oil supply]. OPEC will not be able to produce enough oil to meet market requirements."

    Sounds good. Except, this quote is from 2015. So, this guy may be well respected, but he's no prophet.
  • John Scior on June 14 2016 said:
    Your article gives Mr. Rothman's prediction for higher priced oil, then offers several instances that would prevail against such higher prices. It would be nice to know why Mr. Rothman has made such predictions. Other than his credentials , which I am not questioning, what are the underlying factors that lead him to believe higher oil prices are on the horizon ????

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News