WTI to reach the $80 level amid supply crunch – TDS

Asian and European energy supply crunch is very supportive for oil, in the opinion of economists at TD Securities. WTI is trading around $75/b and could hit the $80/b mark in the coming months. 

Supply crunch to keep crude steady

“Considering that Asia and Europe are facing challenges in securing sufficient energy supplies ahead of winter, and given the fact that US supply has still not recovered very quickly and that OPEC+ may have difficulties delivering the production increases to fulfill its promise to balance the market, crude markets may well continue to catch a bid as we move into Q4.” 

“As OPEC+ struggles to deliver on the promised production increases, while US production growth continues to disappoint due to a lack of investment, and demand trends higher, a move to a higher trading range with $80+/b could be quite possible in the coming months as energy prices around the world could continue surging.”