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Energy Investing
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Re: Oil may hit US$100 a barrel next year on demand rebound: BofAI never trust such calls. Analysts just compete each other by making predictions. I'm not saying it won't happen, it could, but there's nothing in the report to prove such predictions. They don't know how much OPEC+ will bring back to the market, they don't even know what they do in 2 months by predicting next year. They didn't indicate how much demand will rise and how much capacity OPEC+ has to address it quickly. They didn't address that demand will not jump in a day or month, but will rise slowly throughout H2-21 and entire '22, and OPEC+ will have plenty of time to bring more production to match demand. They don't even know how much US will produce, certainly not 11mm bpd, US will add 1 mm bpd easily next year as most $45-48 hedges will expire...no matter what investors demand, not in January, but throughout the year...but demand will rise similar way.... I personally think OPEC+ will try to maintain $75 WTI and $80 Brent as close as they can, but who knows. Such predictions are for gamers. romm |
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