There has been a major dichotomy on Wall Street regarding the oil price trajectory, with some viewing the massive oil and gas rally as being temporary and transitory while the bulls have been saying this rally still has legs to run.
Standard Chartered Global Research has been providing regular commodities updates, and made waves in August when they declared that a Brent price of $65/bbl or lower was more likely than $75/bbl or higher. Stanchart said its bearish view was informed by the fact that “…a significant amount of money has already entered the market in the Wall Street-generated belief (mistaken according to our analysis) that the balances are much tighter and justify USD 80-100/bbl.”
More recently, Stanchart maintained its bearish tone, saying that the oil price rally is not fully justified, and that the fundamental case for USD 80/bbl is not any stronger today than it was a few months ago.
Well, the energy bull market has continued defying all bearish expectations, and has forced Stanchart to do a 180 and join the bull camp.
In its latest commodity update, coming shortly after the October 4th OPEC+ meeting, Stanchart analysts say:
“We think the market has concluded that OPEC+ does not see USD 80 per barrel (bbl) as a ceiling, and that it is unlikely to cool prices in the short term…
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