Oil: Year-end target of $100, upside beyond looks unlikely in 2024 – ANZ
|Economists at ANZ Bank maintain their end of year price target of $100/bbl for Oil prices.
Oil’s last hurrah?
Supply cuts are finally tightening the Oil market. We now expect sharp drawdowns in inventories in the coming months. However, the recent rally in prices remains on shaky ground.
The supply tightness is largely managed by OPEC. Any sustained rally in prices is reliant on demand continuing to improve. For the moment, that appears to be the case. There is hope that recently announced stimulus measures can support further growth.
Over the medium term, some red flags that could cap this upside in prices are emerging. EVs in China are increasingly eating into Oil consumption. We expect lost Oil consumption from EVs to hit 260K b/d in 2023. That will reach 1.5M b/d by the end of the decade.
We maintain our end of year price target of $100/bbl; however, upside beyond this looks unlikely in 2024.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.