COM - Oil Market Set To Tighten Amid Growing Supply Risks
2024-03-21 08:45:00 ET
Summary
- Brent has traded to its highest levels since November last year on the back of OPEC+ extending supply cuts, while supply risks have provided further support.
- We have revised higher our price forecasts.
- The roll over of supply cuts from OPEC+ means that the oil market will shift from a surplus environment in the second quarter of the year to a deficit environment.
Oil market to tighten
The oil market appears to have finally broken out of the fairly narrow range we have seen it trading in since the beginning of the year. Brent has spent much of the year trading within a $75-85/bbl range. However, recently the market managed to break above US$85/bbl. The rollover of voluntary supply cuts from OPEC+ into the second quarter of 2024, Ukrainian attacks on Russian refining capacity more recently, and lingering disruptions to oil flows through the Red Sea have provided a boost to the market....
Oil Market Set To Tighten Amid Growing Supply Risks