US Oil Price Might Hit $140 a Barrel Inside Months, Bank of America Says

  • Bank of America stated it sees US oil costs surging round 16% to $140 a barrel by the summer time.
  • A BofA strategist stated current buying and selling patterns are optimistic for WTI crude, with costs presently at round $120.
  • UBS stated it thinks the reopening of Chinese cities from strict zero-COVID lockdowns will enhance costs.

Bank of America analysts have stated WTI oil, the US benchmark, might bounce round 16% to $140 a barrel this summer time primarily based on present buying and selling patterns.

Oil costs have surged this yr, largely on account of Russia’s invasion of Ukraine. WTI crude has risen greater than 50% to commerce slightly below $121 a barrel Wednesday.

BofA analyst Paul Ciana stated in a observe Tuesday that current buying and selling patterns in WTI oil had been “bullish” — that’s, suggestive that costs are heading greater.

He famous that costs rose to $130 a barrel in March earlier than cooling, however are actually on the up once more, suggesting there’s momentum behind the asset.

“Price has corrected and rounded out a bullish continuation pattern pointing to $140 a barrel this summer,” Ciana wrote.

Ciana added that traditionally costs have tended to maneuver greater when WTI crude has traded above $115 a barrel. WTI has traded above this stage because the begin of June.

Many in investing are skeptical of chart evaluation, nonetheless, arguing that an asset’s previous strikes are usually not a dependable information to the longer term.

Yet analysts at UBS stated Wednesday that there are many financial causes to count on oil to maintain rising: chief amongst them the loosening of COVID lockdowns in China.

“We expect near-term oil prices to be supported by China’s economic reopening and the Northern Hemisphere summer season,” UBS Wealth Management chief funding officer Mark Haefele stated in a observe to purchasers.

Haefele stated buyers ought to contemplate investing in oil futures as a solution to profit from the reopening of China this summer time.

Read extra: Stocks have not appeared this low cost because the begin of the pandemic, in line with Morningstar’s chief market strategist. He shares 8 undervalued names to purchase – and 4 headwinds that buyers ought to nonetheless be nervous about.

Source hyperlink

Leave a Reply

Your email address will not be published.