RB Financial Securities research department have noted that the recent rise of oil prices in the last six weeks could indicate that we are heading to new heights not seen since 2014.
There are many catalysts that would rocket the price from its current $80 per barrel level. The new potential regulatory introduction from the International Maritime Organization (IMO) would only tighten supplies that could be introduced as early as 2020.
“Without doubt there is a strong likelihood of a rally in the commodity within the next few months as tensions grow; casting back to 2008 Brent had an extreme bullish run when it climbed to $150 per barrel, we could see a repeat” said S. Washichi, Head of Research & Analysis at RB Financial Securities.
A notable factor in its rise for the past month has been due to an increasing worry regarding both Iran and Venezuela supply fears. Iran had supply losses of over 1 million barrels per day with the extended uncertainty the figure could be revised to a high amount.
With many market experts saying that the recent price fluctuations could be amid refinery issues rather than shortages in the market place.
The huge lack of guidance from the Organization of Petroleum Exporting Countries (OPEC) does not install confidence in retail commodity investors regarding its stance on production growth.
Source: RB Financial SecuritiesPrevious Next
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