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Prices Continue To Rally

Published 02/05/2021, 05:36 AM
Updated 07/09/2023, 06:31 AM

Oil continues to be in demand 

Oil continues to rally following OPEC’s supportive post-JMMC comments earlier this week. Preliminary OPEC production data for January also suggests compliance with OPEC+ quotas improved in January.

Admittedly, the biggest % improvement came from Nigeria as a result of technical problems, but aggregate compliance is good and the group has left no doubt about its continued emphasis on supporting oil prices through the uncertain demand conditions expected this year—and in H1 in particular.

Brent above $59/b is pricing in a level of optimism that worries me a bit—not because I am concerned about oil fundamentals, but because of how sentiment might react to the inevitable bumps in the road as the market moves back into balance.

Latest comments

What to worry? Mankind really should worry where is the free energy? Paris Agreement is just a fanfare target, not a solution.
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