Analysts around the world are suggesting that oil prices will rise significantly in the near future. This view is based off of the monthly chart of the oil spot price, which shows that there is a considerable margin between the current price of oil and the average price for the past 3 years.
Going forward, there are several catalysts that could possibly contribute to a spike in oil prices. First, the Organization of Petroleum Exporting Countries (OPEC) has agreed to cut production, which could lead to a tightening in supply. Secondary, sanctions placed on oil-producing countries by the US and EU could further strain the markets and cause the price to rise.
Finally, demand from emerging markets is also expected to increase in the coming years, as these countries continue to develop. This could lead to a further rise in demand for oil and consequently its price.
Given the current market conditions, the monthly chart suggests there could be a significant surge in oil prices in the coming months. Investors who are positioned for such a move would likely benefit significantly from this opportunity.
At the same time, caution must be taken. Should the global economic situation take a sudden turn for the worse, then the prices of oil could also rapidly decline. Therefore, investors should be vigilant and closely monitor the progress of the economy and its impact on the global oil markets.
In the end, the monthly chart clearly suggest that higher oil prices are looming on the horizon and could be expected to be seen over the coming months. For this reason, investors should plan accordingly in their positioning and decision-making.