A number of analysts including JP Morgan and Morgan Stanley are suggesting Oil prices could move north of $90.00 this year
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It's been a while since crude oil market moved significantly. Now the Chinese economy is reviving and it increases the chance for a higher and, thus, higher prices, however right now the price line looks quite resilient.
FXMAG.COM: Crude oil trades below $80, what could affect the prices in the near future?
Andria Pichdi (HF Markets): US EIA Oil Inventories fell for the first time in 2023 on Wednesday, dropping by 1.7 million barrels versus expectations of a build of 395,000 barrels. This came on top of a 5% decline on Tuesday following hawkish “higher, faster and for longer” comments from Fed Chair Powell, with regard to the future trajectory of US interest rates. This boosted short term US Treasury yields with the 2/10yr yield curve now inverted by over 100 bp, a traditionally reliable indicator of economic recession. On the plus side the demand out of China is rising and the reopening of that economy should be a significant driver of demand. A “soft landing” or even “no landing” for the US economy would also boost demand. A number of analysts including JP Morgan and Morgan Stanley are suggesting Oil prices could move north of $90.00 this year and some, including Goldman Sachs, are suggesting $100 barrel oil, which cannot be ruled out.
