FXStreet reports that in the opinion of strategists at Deutsche Bank the Brent crude oil is likely to break above $80/bbl this year, but retrace somewhat in 2022.

“We think fundamental strength is likely to support further gains, with Brent likely to break above $80/bbl this year.”

“Our central case rests on OPEC introducing no further supply beyond expected Iranian volumes beginning in September.”

“There are reasons not to extrapolate toward $100/bbl from the strength of the rally, and we forecast Q4-22 Brent to retrace to $75/bbl.”

“The call on OPEC will be limited by a slow but gradual US supply response, Iran should finally achieve a deal to reintroduce supply late this year, and OPEC members may grumble louder for quota increases around the May 2022 provisional date.”