Break above $100 will not be sustainable – ING

Oil prices are currently up by more than 25% this quarter. Economists at ING expect Brent to break above $100 in the near term. However, they do not believe such a move will be sustainable.

Oil price rally likely to continue, but not sustainable in the longer run

We expect Oil prices to break above $100 in the near term as supply cuts by OPEC+ countries more than offset weaker demand due to the global economy’s slowdown.

However, we don’t see Oil prices remaining above $100 for long as weaker demand and political pressure to increase supply should help to bring Oil prices back to levels slightly above $90.