Oil: Risks point to further upside in prices - TDS
|Brent crude climbed above $80/bbl after OPEC and its allies signaled an unwillingness to lift output as WTI also jumped higher, with prices approaching $72/bbl, points out Bart Melek, Head of Commodity Strategy at TD Securities.
Key Quotes
“With OPEC not guaranteeing that it would automatically replace additional lost Iranian barrels of oil due to sanctions over the weekend, both Brent and WTI saw additional upside. As a result, the necessary factors have now aligned in order to lift crude oil markets even higher.”
“Continued declines in US inventories and firm demand amid pending supply declines stemming from US sanctions directed against Iran are set to tighten global crude markets.”
“Since prices dropped so quickly and fiercely in 2014, technically speaking there are very few strong resistance levels which could prevent prices from once again surging into the $90s/bbl range for Brent.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.