- Financial institution of America stated it sees US oil costs surging round 16% to $140 a barrel by the summer season.
- A BofA strategist stated latest buying and selling patterns are constructive for WTI crude, with costs at the moment at round $120.
- UBS stated it thinks the reopening of Chinese language cities from strict zero-COVID lockdowns will increase costs.
Financial institution of America analysts have stated WTI oil, the US benchmark, might leap round 16% to $140 a barrel this summer season based mostly 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 just below $121 a barrel Wednesday.
BofA analyst Paul Ciana stated in a notice Tuesday that latest buying and selling patterns in WTI oil had been “bullish” — that’s, suggestive that costs are heading increased.
He famous that costs rose to $130 a barrel in March earlier than cooling, however at the moment are on the up once more, suggesting there may be momentum behind the asset.
“Value has corrected and rounded out a bullish continuation sample pointing to $140 a barrel this summer season,” Ciana wrote.
Ciana added that traditionally costs have tended to maneuver increased when WTI crude has traded above $115 a barrel. WTI has traded above this degree for the reason that begin of June.
Many in investing are skeptical of chart evaluation, nonetheless, arguing that an asset’s previous strikes usually are not a dependable information to the longer term.
But analysts at UBS stated Wednesday that there are many financial causes to anticipate oil to maintain rising: chief amongst them the loosening of COVID lockdowns in China.
“We anticipate near-term oil costs to be supported by China’s financial reopening and the Northern Hemisphere summer season season,” UBS Wealth Administration chief funding officer Mark Haefele stated in a notice to purchasers.
Haefele stated buyers ought to contemplate investing in oil futures as a strategy to profit from the reopening of China this summer season.
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