Oil Price Forecast - June 28

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Oil Price Forecast - June 28

Post by dan_s »

From OilPrice.com

"As we predicted last week, the temporary weakness in oil prices coming from a widespread futures sell-off by speculators was nothing more than just a respite before another upwards climb. The unchanged physical tightness in oil markets, which can be seen from backwardation, combined with French President Macron highlighting the lack of spare production capacity of Middle Eastern oil producers stoked bullish sentiment. With Libya potentially losing another 300,000 b/d of its production/exports in the coming days, a jump above $120 per barrel later this week is very much on the cards."

Western Powers Mull Russian Oil Price Cap.
G7 countries have agreed to explore imposing a ban on transporting crude that has been sold above a capped price, despite analysts warning that such measures dramatically increase the likelihood of sudden supply cuts from Russia.

G7 Summit Might’ve Blown OPEC+ Narrative.
At this week’s G7 summit in Bavaria, French President Emmanuel Macron cited the heads of the UAE and Saudi Arabia, saying that both had informed him that they can barely increase production over the short term.
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Goldman Sachs still holding with their forecast of $140/bbl Brent by end of Q3.
JPMorgan says $170/bbl is possible.
Dan Steffens
Energy Prospectus Group
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