Analysts from Rabobank, see recent moves in crude oil prices as a knee-jerk reaction to a misleading headline which will ultimately reverse itself.
“Oil markets moved sharply lower this week on the back of statements from US Secretary of State Pompeo indicating that Iran was ready to come back to the negotiating table”.
“The forward curves for both WTI and Brent remain strongly inverted which is good evidence of a tightening market”.
“Looking forward we remain biased to the upside for oil prices in the second half of this year. We view this week’s price selloff as headline driven and likely to reverse itself overtime as fundamental tightness becomes more apparent to the market. Our base case is for Brent to stabilize around the $75/bbl mark in the 3rd quarter and for WTI to stabilize around $70/bbl.”