There is significant optimism about oil prices for next year, given the return of inventories to something approaching “normal” levels, and a high degree of compliance amongst oil producers who have agreed to cut production. Strong economic growth should see robust demand next year, and there is a relatively strong consensus that the market will be bullish for oil prices, with some talking about a $70 or $80 target for Brent. Compared to the swings of the last decade, a $10 or even $20 increase seems like a pittance, but would actually put $100-$200 billion dollars into the pockets of OPEC countries, and add tens of billions to the oil industry’s revenues.
