Crude Oil, $70 by the end of the year?
As expected, oil prices continued to soar.
The recent production cuts coupled with a pick-up in demand have been fueling the rally.
The additional cut of 1 million bpd by Saudi Arabia, along with most of the other OPEC + members except Russia and Kazakhstan, who have kept their production levels unchanged, has ensured that the market will continue to reduce inventories during the first quarter of 2021.
As you can see on the graph,
cdn.shopify.com/s/files/1/0065/8856/3508/files/p_oil_480x480.png?v=1615818228
we are about to enter a deficit phase, with the demand for oil higher than the supply thanks to the decline in infections which is increasing the demand for oil around the world.
We remain optimistic about oil, already in February we gave a positive indication on our channels with a target of 60 usd. According to us, by the end of the year, we can easily reach 70 usd.
The recent production cuts coupled with a pick-up in demand have been fueling the rally.
The additional cut of 1 million bpd by Saudi Arabia, along with most of the other OPEC + members except Russia and Kazakhstan, who have kept their production levels unchanged, has ensured that the market will continue to reduce inventories during the first quarter of 2021.
As you can see on the graph,
cdn.shopify.com/s/files/1/0065/8856/3508/files/p_oil_480x480.png?v=1615818228
we are about to enter a deficit phase, with the demand for oil higher than the supply thanks to the decline in infections which is increasing the demand for oil around the world.
We remain optimistic about oil, already in February we gave a positive indication on our channels with a target of 60 usd. According to us, by the end of the year, we can easily reach 70 usd.
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