Despite the recent drop, UBS strategists believe that crude oil prices are well supported. They expect oil reaches around $125 a barrel by June, only tapering off to $105 by the end of the year.
Crude is well supported despite the drop
“Russian oil exports and production to be affected by sanctions and bans select import prices, which will further tighten global supplies. We hope that the impact on Russian oil exports and production will become more apparent later this month“.
“The resulting reduction in world production will be difficult to offseteither by other producers or by releases from government reserves.”
“Global oil demand still headed for record highs in the second half of the year. We continue to expect global oil demand to reach an all-time high in the second half of the year, at more than 101 million barrels per day.”
“We expect oil to hit around $125/bbl by June, only tapering off to $105 by the end of the year. Crude and energy stocks remain a hedge against the conflict in Ukraine.”
Source: Fx Street
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