U.S. oil may reach $80 per barrel this summer, a 10 percent jump from current levels, according to Oil Price Information Service’s Tom Kloza, who also expects global prices to rise in tandem.
“I wouldn’t be surprised to see Brent prices around $85 [per barrel] and to see the U.S. Crude probably close to that—about $80,” Kloza told Maria Bartiromo on FOX Business’ “Mornings with Maria” on Monday.
More firms are sounding the alarm bell on rising crude prices. Last week, analysts at Bernstein Research warned prices could double and surge past all-time highs of around $150 a barrel with a possible supply crunch on the horizon.
While Kloza doesn’t share that view, he did note a U.S. military response to Iran could modify his outlook.
“This is about as good as it gets as far as global economies go so we have to measure everything from here as maybe the high standard,” he said.
Kloza added global production of crude will reach 100 million barrels for the first time by August of 2018.