Oil Climbs Toward $63 With Tightening Market Boosting Outlook
(Bloomberg) – Oil moved toward $ 63 a barrel, with investment banks and traders predicting the market would increase prices further and raise prices.
Futures gained 1.3% in New York on Tuesday after climbing more than 4% in the previous session. According to Morgan Stanley, the market may be the hardest quarter since at least 2000, while Souser Trading SA is looking at the global benchmark Brent by $ 80 this year as the Kovid-19 drought of inventions created during the pandemic It is summer.
See also: Bright oil backwardation in wide market on years in tight market: chart
According to the Trafigura Group, a decrease in oil production after a large freeze in the US will also strengthen the market. Fuel flow from Asia to the US has slowed after the cold blast.
After Saudi Arabia promised to cut 1 million barrels a day in February and March, oil has jumped this year, according to Goldman Sachs Group Inc.’s prediction that the rally will boost global supply. Russia and Riyadh, however, will once again join the OPEC + meeting next week, with differing opinions about adding more crude to the market.
“The oil complex continues to have positive momentum, with investors seeing a boom,” said Stephen Innes, the global market strategist at Oisei. “There is far more optimism than fear.”
In more than a year, Brent quickly accelerated into a rapidly backward structure. The difference increased to $ 1 a barrel on Tuesday, compared to 25 cents at the beginning of the month.
Read more: Commodity returns remain three-year with oil drop
Morgan Stanley said in a note that the global oil market has supplied 2.8 million barrels so far this year, raising the Brent forecast to $ 70 a barrel in the third quarter. Goldman raised his estimate to $ 75 for the same period, while Soker said $ 100 was possible over the next 18 to 24 months.
America’s cold snap is likely to reduce the impact, Trafigura’s oil trade co-head Ben Lakcock said in a Bloomberg television interview. He said 40 million barrels of February oil production – largely from the Permian Basin – would not be produced due to the freeze.
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