Brent Oil to skyrocket towards fresh highs at $75 by the third quarter – ANZ


Crude oil prices continued on their rollercoaster ride following last week’s announcement that OPEC will be gradually increasing output in coming months. Strategists at ANZ expect the impact of this increase in quotas to be minimal on supply in the second quarter or any month thereafter and forecast Brent Oil breaking above the $70 level.

OPEC starts normalisation process back to full capacity

"In the end, OPEC+ agreed to increase quotas by more than 1.1mb/d from May-July in three equal monthly instalments. Over the same period, Saudi Arabia will wind back its additional 1 million b/d cut below its official quota.” 

“The higher-than-expected increase in quotas in May will be offset by the more gradual rise in Saudi Arabian output. Overall, that has seen us raise our estimate of supply by only 400kb/d in Q2 2021. Even with the additional supply, we still expect further drawdowns in global inventories. This is likely to induce more OPEC supply back into the market in H2 2021. These bullish balances with sequential draws in the second and third quarters will firm up prices.” 

“A more positive macro backdrop is also likely to attract further investor interest in the sector.” 

“We maintain our positive view on prices in the short term, with Brent crude breaking through $70/bbl to hit fresh highs of $75/bbl in Q3.”

 

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slips below 1.2050 amid dollar strength

EUR/USD is trading below 1.2050, losing some of its gains as the dollar shrugs off the fresh drop in yields and rises. European regulators said the benefits of J&J's vaccine outweigh the risks.

EUR/USD News

GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 

GBP/USD News

XAU/USD tests key Fibo resistance at $1,775

XAU/USD rebounds after closing in the negative territory on Monday. 10-year US Treasury bond yield is edging lower on Tuesday. Additional gains are likely if gold manages to clear $1,775 resistance.

Gold News

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

Read more

S&P 500 (SPX) Update: Equity markets take a well deserved breather, crypto stocks slide

Equity markets took a much-needed break from setting record highs on Monday. Tesla suffered a steep 5% fall after reports of a crash with no one at the wheel. Have a Coke and a smile was up 1% as KO smashed earnings estimates.

Read more

Forex MAJORS

Cryptocurrencies

Signatures