Oil markets are in fine form with Brent crude now surpassing USD70/b. The market continues to remain tight and in a large enough deficit to accommodate a ramp-up in OPEC+ production, which is being outstripped by the sheer velocity of the vaccine-led recovery in global demand.
Ehsan Khoman, Head of Emerging Markets Research (EMEA), offers his insights as to why he remains resolutely bullish on oil prices over the summer months, and maintains his February call for Brent to end Q2 and Q3 at USD77/b and USD73/b, respectively, given the buoyant demand rebound owing to accelerated vaccines and reopenings, in the face of inelastic supply.
Disclaimer: www.mufgresearch.com (PDF)
Version: 20240320