Oil stocks, like Exxon Mobil (XOM), could push even higher.
All as oil prices continue to gush higher. Last trading at $80.80, oil could approach $90 on a few key catalysts. For one, according to the International Energy Agency (IEA), we’ll see a slight supply deficit this year, instead of a surplus. All with the IEA assuming that OPEC+ will keep its production cuts in place throughout the year.
Two, “Upward revisions on demand growth and lower supply growth estimates result in almost a 400,000 bpd tighter market compared to last month,” said UBS analyst Giovanni Staunovo, as noted by Reuters.
In addition, Morgan Stanley just said investors could get caught off guard by an oil price rally this summer. Those comments came after Ukrainian attacks on Russian refineries and hopes the Federal Reserve will start cutting rates sometime soon.
Sincerely,
Ian Cooper
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