Checking through analysts notes and comments for oil, demand is seen as rising:
- NY has reopened
- California has reopened
US demand is expected to continue to strengthen on such developments especially during the summer ‘driving season’.
Also:
- signs of rising traffic across Europe
Outside the US/Europe its not quite so rosy, says Commerzbank:
- China … (demand) appears to be cooling again somewhat … high prices, low refinery margins, fairly high inventories and an increasing focus on electric vehicles are all taking their toll
Other:
Vitol (via a Platts report)
- expects global oil prices to trade in the $70-80/b range for the remainder of 2021
- OPEC+ producers maintain their production discipline to accommodate the expected return of Iranian oil exports to the market
Goldman Sachs (Platts again)
- warn the end of investment in long-term crude projects and the ripple effect that could have on prices further out (ie higher)
Glencore (via an ANZ note)
- global demand should return to normal in the third quarter
Vitol again (via ANZ)
- diesel and petrochemical demand is already at pre-pandemic levels
This article was originally published by Forexlive.com. Read the original article here.