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“Following last week’s inventory build, the current EIA report showed that crude oil inventories dropped a much larger-than-expected 9.9 million bbls to their lowest since March, largely as a result of a large drop in imports,” said TD Securities analysts.

Key quotes

“Yet, economic data continues to show the negative impact of the second round of COVID and vaccine programs rollouts across the world leave much to be desired, which has many observers such as TD Securities downgrading their demand estimates for 2021.”

“The risk is that OPEC+ discipline and compliance may soon be peaking, as the higher price environment incentivizes nations to unwind the excess capacity into the market down the road.”

“Medium-term, TD Securities sees WTI averaging around $55/b once the economy normalizes, demand is on target to grow the expected 5.5 million b/d in 2021 and excessive supply growth concerns fade, with Brent a few dollars higher.”