On Monday, Brent added 0.5% to $63.28 but remains to be seen if it can break past the $65 barrel. Strategists at OCBC bank think the consolidation from $60-$65 may continue, but their long-term bias is still to the upside.
Stabilisation around $60-$65
“The US has appeared to have finally gotten over its Q1 cold snap, with the refinery utilization rate now at 84% – the highest in more than a year. This should help to draw down crude oil stocks more quickly, which means how quickly gasoline inventories can draw down from here will be the main determinant of oil prices in the immediate future.”
“The resurgence of the virus worldwide – first in Europe, now in Asian economies like India and S.Korea – mean the upward bull run may be derailed for the time being.”
“For now, we expect the $60-$65 consolidation to hold, although our bias is still to the upside.”
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