Should We Be Ready for $150 Dollar Oil ...
It’s a fair call. Oil trades at $123 dollars a barrel Brent Crude Basis as we write. West Texas WTI trades at $122. It’s a tight spread. Despite the forecasts of a slow down in world growth from the World Bank, the OECD and the IMF, demand for oil remains strong and looks set to continue for the rest of the year.
The shortage of refining capacity is exacerbating retail fuel prices. Investment intentions are subdued. Oil companies are concerned about tight margins. They are not entirely sure about future demand patterns and the sustainability of higher prices. Investor pressures, with an ESG agenda, are inhibiting investment plans.
Check out the post for more information.
"To understand the markets, you have to understand the economics"