Oil is holding steady, up 0.2% on the day
There hasn’t been much to really thwart the momentum in oil and I don’t see the OPEC+ decision this week being a major game changer whatsoever.
The consensus is largely that OPEC+ will step up production by 500k bpd but there is a slight chance they may go for more. That might upset oil bulls a little but it won’t deter them from the bigger picture and the continued rally in oil surely.
With the market so focused on inflation and with the ongoing view that demand conditions are likely to keep more robust going into 2H 2021 as well as 2022 as the world economy picks up, it is tough to fight the universal call that oil prices are headed upwards.
The July and October 2018 highs at around $75-76 will pose the next challenge but that may be a mere pit stop before the next leg higher in oil should this landscape maintain.