Iraq Expects Oil Prices to Reach $80 Per Barrel

Iraq expects oil prices to reach $80 per barrel, the country’s state news agency reported on Sunday, citing an oil ministry spokesman.

The spokesperson, Asim Jihad, did not give a timeframe for the increase he predicted.

Crude prices have been on the rise over the past weeks, settling over $70/barrel on Friday, amid expectations of limited growth in US oil output this year.

Days earlier, Goldman Sachs said it expects oil prices to climb to $80 per barrel in the fourth quarter of this year, betting that a recent oil market rally will continue as vaccination rollouts boost global economic activity and demand for the commodity.

“Rising vaccination rates are leading to higher mobility in the US and Europe, with global demand estimated up 1.5 mb/d (million barrels per day) in the last month to 96.5 mb/d,” the bank said in a note released on Thursday.

Goldman expects recovery in oil demand to continue and sees global demand reaching 99 mb/d in August.

Last Saturday, Iraqi Minister of Oil Ihsan Abdul Jabbar said that Iraq’s oil sector is rebounding with key investment projects on the horizon.

“The administration of the Basra and the south oil companies and the relevant departments in the Ministry are putting the final touches to the proposed project scheduled to be signed in the upcoming period,” a statement of the Ministry of Oil said.

Jabbar, said: “These projects are a priority in the Ministry’s plans for an optimal investment of flared gas and upholding the infrastructure.”

This is where the partnership with Total, and perhaps other majors as well, comes into play, he added.