After a period of relative stability in oil prices, a slew of market participants are growing increasingly upbeat on a turnaround for the commodity, predicting a sustained rally in the near term.
The price of oil collapsed from near $120 a barrel in June last year to a low of around $45 a barrel in January. It has since bounced back to around the $60-a-barrel level. Analysts are now contemplating what the new equilibrium should be for the commodity, with a slew of market watchers predicting it could climb to around $70 before the end of the year.
"What we are seeing now is improvement, suggesting a recovery within the longer term downtrend…I'm short-term bullish on Brent," Roelof van den Akker, a chartist at ING Wholesale Banking, told CNBC Friday. He expects the price of Brent crude to reach $72.40 a barrel in the near future.
"I would not be surprised by further upside potential in Brent oil towards $78 to $80," he added.