WTI Could Raise Just Below $ 45

WTI Could Raise Just Below $ 45

Bart Melek, head of commodity strategy at TD Securities, believes the crude oil market rebalancing will happen next year. It expects the WTI to rise to the final levels just below the $ 45 level, but this year is unlikely to have a higher trading range between $ 45 and $ 50. “As US demand continues to improve, crude oil inventories dropped sharply for a week. OPEC + is likely to match its supply in line with demand growth since March and US production dropping above 2 million barrels / day. It is very likely that the crude oil market will rebalance by 2021. This, together with broad risk appetite, an upcoming trillion dollar US incentive program, and a vaccine, suggests that WTI crude oil could test recent highs by moving towards the resistance level just below the $ 45 / barrel level. " “If the OPEC + supply remains matched with increasing demand and the coronavirus still remains an important global demand risk factor, a continuous break to the higher trading range of $ 45-50 / bbl is unlikely this year. "