USOI - Oil Update - December 2020

• I am increasing my December West Texas Intermediate oil price forecast by $2.50 to $42.50 to $52.50 per barrel for January 2021.
• As we roll further into 2021, I expect more progress in controlling the pandemic and more optimism toward higher oil prices.
• I expect oil equities to move higher with rising oil prices, though not to the same levels they were at prior to the outbreak of COVID-19.
• In general, though, until we learn more how the new administration repositions its policies, I am taking a wait-and-see approach.

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