Analysts at Citigroup believe that oil is likely to trade in the upper end of its range, in the wake of the encouraging news on vaccine trials.
Key quotes
“Oil prices are expected to “range-bound” in the near term but with the roll-out of vaccine distribution to take time this will weigh during the northern winter months.”
“OPEC+ to deliver a three-month rollover of the current 7.7m b/d cuts, will help re-balancing of the market.”
“Further ahead, if OPEC+ then go further and holds the current quota for 1H 2021 would draw down inventory to a tight level and prompt an overheating in market.”
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