PROBABLY, BUT PROBABLY NOT FOR VERY LONG: Can OPEC Send Oil To $70?

The latest, by hedge fund manager Pierre Andurand, is that crude will reach US$70 by June 2017. Andurand made this call before the weekend deal between OPEC and external producers was announced, noting that the Vienna agreement reached among the members of the organization was a “major turning point”.

Three months ago, Andurand had forecast that crude would reach US$60 by the end of the year and US$70 in 2017, so he’s now just repeating his earlier prediction, with a sounder basis this time. Back in September, he had said that Saudi Arabia is aware of the long-term implications of a depressed oil market and was ready to take steps to avoid a deficit in the longer run.

And if OPEC and the major non-OPEC states actually stick to their cuts, that’s just more $60 or $70 oil we get to sell to a thirsty world.