Oil: Improving crude fundamentals – TDS

Given the volatility and risks in the front months, strategists at TD Securities opt to bet on improving crude fundamentals deeper out the curve.

Key quotes

“While the situation is dire and will have longer lasting impacts, we anticipate the worst will be behind us heading into Q3.”

“Into Q3, as much as 4m bpd worth of market driven decline which could include more than 2m bpd decline from the US, along with some normalized improvement in demand should see the market return to deficit conditions in the second half of the year.”