(CNBC) Analysts are predicting higher oil prices after OPEC+ agreed to raise output by 400,000 barrels a day.
The analysts’ projection came even as oil fell by more than 2% on Monday following the OPEC+ production deal.
The analysts say the pace at which OPEC+ was restoring oil output was slower than the rise in global demand that could support higher prices in the next six months.
OPEC+ move ends a phase of production cuts totaling about 5.8 million barrels a day by September 2022.
Oil strategists had warned of $100 oil price if OPEC+ do not reach an agreement, following a stalemate caused by UAE’s decline of group’s proposal to rollback output curbs.
Andy Lipow, who heads Lipow Oil Associates, projects oil prices of as high as $78 a barrel for Brent.
Strategists still raise warnings of sluggish demand amid the return of Covid variants that could still weigh in on oil prices.
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