Oil prices could increase as much the $4.40 to $5.20 a barrel range this week.
That would bring crude prices over $80 per barrel for the first time since late 2015, according to analysts polled by Bloomberg.
“The outlook for crude prices is very favorable and is now well within the reach of the U..
S.,” said Paul C. Singer, chief oil market strategist at New York-based Citi.
The average daily U.N. crude inventories for April and May were more than 1 million barrels, up from less than 700,000 barrels, according a Bloomberg survey of analysts conducted this week by Barclays.
Brent crude is currently trading at $46.76 per barrel, up 2 cents from Tuesday.
In an April survey by RBC Capital Markets, Brent crude futures were up about 4 cents to $47.55 per barrel.
“There’s a chance that the recent rally in oil prices will continue in the near term, but it could be quite a bit more, particularly if we see further supply from OPEC,” said Paul Wood, a senior economist at Raymond James & Co. in New York.
Brent has been above $50 a barrel since the summer of 2015, and its recent rally has been fueled by OPEC supply cuts, which have pushed up oil prices.
A glut of crude oil in the U