Hurricane Marco and Laura came and went, and oil prices went back into consolidation. Brent Oil is stable around the $46 level but Howie Lee, an economist at OCBC Bank, expects the black gold to hit $50 by the end of 2020.
Key quotes
“The twin hurricanes largely avoided the key ports and refineries in Texas. Prices at the back end have rallied with the hurricanes but do not appear to have corrected as much as the front end of the curve.”
“US crude oil inventories declined for the fifth consecutive week; implied gasoline demand is now within 2.5% of its pre-coronavirus levels; and China diesel demand in July rose its highest since Feb 2018, notwithstanding seasonal effects.”
“Near-term, consolidation looks like it might continue. Further out, we remain bullish on crude oil, with the view that Brent may hit $50/bbl by end-2020.”
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