OTCPK:VREYD - Post by User
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sculpin2on Jul 31, 2019 10:50am
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Post# 29979333
Raymond James still calling $90wti in 2020
Raymond James still calling $90wti in 2020 Energy Stat: Oil Price Gains Set to Continue, as Supply-Side Factors Outweigh Question Marks Over Demand | | |
| As fun as it is to track White House oil-related tweets and the Royal Navy's Persian Gulf adventures, what ultimately matters for oil prices is (drumroll please)... actual supply/demand fundamentals. As we reiterate today, our global oil supply/demand model remains broadly upbeat, driven largely by bullish supply-side factors. After taking into account the recent extension of the OPEC+Russia production cuts as well as our latest U.S. rig count forecast, we expect global petroleum inventories to draw by 1.0 million bpd in 2019 and 300,000 bpd in 2020, with inventories (on a days-of-consumption basis) set to fall to unprecedentedly low levels in 2020. | | | After marking-to-market near-term oil prices, including the recent price volatility amid macro-related concerns about global demand, our 2019 WTI forecast decreases from $65.50/Bbl to $62.50/Bbl, and similarly Brent from $74 to $71. More importantly, we continue to believe that 2020 will be a cyclical-peak year, due to the impact of IMO 2020, and thus we maintain our forecast of $92.50 WTI and $100 Brent - which is at the high end of Street expectations and well above the current futures strip. | | | | | | |