Oil at $100 per barrel is a possibility if momentum in the crude market keeps going, according to Wall Street analysts.
“The notion of $100/bbl has evolved from completely unimaginable a few short months ago, to within striking (or hyping) distance today,” Michael Tran and Helmina Croft at RBC Capital Markets wrote in a note to investors on Thursday.
West Texas Intermediate (CL=F) snapped a nine-day rally on Thursday to settle at $86.87. Brent crude futures (BZ=F) fell fractionally to $89.92per barrel.
“The idea of $100/bbl remains far from a base case scenario for us, but we have learned to respect that this oil market has evolved into as much of a momentum-based market as it is a fundamentally based one when thinking about near dated prices,” said the note. “It often overshoots and overcorrects.”
Brent Crude Oil Last Day Financ (BZ=F)