Brent could climb to $ 80/ bbl next year – ex-Goldman Jim O’Neill

Closely followed economist and former Chairman of Goldman Sachs Asset Management, Jim O'Neill, wrote in Barron’s over the weekend, Brent crude oil may surge to $80/ barrel (bbl) in the next year.

Key Quotes via CNBC:

Conventional wisdom holds that prices won't budge much over the next year.

"While oil prices could be about $60 per barrel in November 2018, my guess is that they will have risen to about $80 per barrel in the meantime."

On the supply side, traders are getting nervous about Saudi Arabia, "the world's most important marginal supplier of oil," as the kingdom embarks on "radical changes" to domestic and foreign policy.

"With the spot price having now moved above the five-year forward price, one could conclude that a trend change is under way. For my part, I'm unsure, but I wouldn't be surprised if it happened."