Crude prices have plunged this week on risk aversion amid the growing banking crisis. However, the strategists of ANZ Bank they expect the sell-off to be relatively short-lived as fundamentals point to a tighter market.
OPEC will maintain the production cuts announced at the end of 2022
“For the time being, the risks remain to the downside. Consequently, we have cut our short-term target (0 to 3 months) for Brent crude at $75 per barrel“.
“We expect OPEC to maintain the announced production cuts at the end of 2022. Lower prices could also induce higher demand, with the US replenishing its strategic reserve.”
“As macro issues subside, we expect crude oil prices to exceed $100/bbl in the second half of the year.”
Source: Fx Street
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