Oil Price Forecasts moving higher - Feb 9
Posted: Tue Feb 09, 2021 3:06 pm
Brent topped $60 per barrel on Monday, hitting a fresh high. OPEC+ cuts combined with enhanced expectations of U.S. economic stimulus pushed crude oil up. The market continues to tighten. “Support seems robust and the narrative sees the oil market swiftly burning through the remaining crisis-surplus, potentially running into tightness later this year,” Norbert Rücker, an analyst at Swiss bank Julius Baer, told Reuters.
Could oil hit $100? Oil prices could go as high as $100 a barrel next year on the back of “very easy monetary policy” and reflation trade, Amrita Sen, chief oil analyst at Energy Aspects, told Bloomberg in an interview.
Commodities swept up in broader reflation trade. Fiscal and monetary stimulus and expectations of rising inflation are pushing prices of commodities up. “It’s hard to resist this reflation trade at the moment,” said Christoph Rieger, head of fixed-rate strategy at Commerzbank AG. “With policy all one-way and U.S. refunding coming up this week, we may require some more concessions.”
Trafigura sees more upside to oil. Oil trader Trafigura said that oil prices have more room to run because refiners will begin ramping up processing, further draining inventories. “The refiners will come for the oil,” Ben Luckock, Trafigura’s co-head of oil trading, told Bloomberg. “Come summer, we will be through $60 a barrel for sure, the question is whether we make it to $70.”
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It always amazes me how quickly the "Wall Street Herd" changes direction when the Alpha Dog (Goldman Sachs) tells them to.
Could oil hit $100? Oil prices could go as high as $100 a barrel next year on the back of “very easy monetary policy” and reflation trade, Amrita Sen, chief oil analyst at Energy Aspects, told Bloomberg in an interview.
Commodities swept up in broader reflation trade. Fiscal and monetary stimulus and expectations of rising inflation are pushing prices of commodities up. “It’s hard to resist this reflation trade at the moment,” said Christoph Rieger, head of fixed-rate strategy at Commerzbank AG. “With policy all one-way and U.S. refunding coming up this week, we may require some more concessions.”
Trafigura sees more upside to oil. Oil trader Trafigura said that oil prices have more room to run because refiners will begin ramping up processing, further draining inventories. “The refiners will come for the oil,” Ben Luckock, Trafigura’s co-head of oil trading, told Bloomberg. “Come summer, we will be through $60 a barrel for sure, the question is whether we make it to $70.”
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It always amazes me how quickly the "Wall Street Herd" changes direction when the Alpha Dog (Goldman Sachs) tells them to.