Experts: Oil to Hit $85 in Rebound from 20 Percent Fall

Oil has dropped 20 percent recently, dipping beneath $65 a barrel, but oil traders don’t believe that slump will continue.

The proof: December 2018 oil futures on the New York Mercantile Exchange recently were above $90. And Bank of America Merrill Lynch sees oil averaging $85 next year.

“The price is holding at decent levels” for delivery in later years, Paul Tosseti, an analyst for PFC Energy consultants, told Bloomberg.

“You need a certain level for all these high-priced resources that are coming on-stream — deepwater Gulf of Mexico, deepwater Brazil and the Canadian oil sands. That’s the dynamic part of the non-OPEC oil supply.” (more)