This week, Crude Brent Oil reached a peak of 97$/barrel before coming down to the 95$ area. Economists at Nordea analyze Oil’s outlook.
A further rise to the $120 area cannot be ruled out
The tightening of crude storages has supported the Oil price rally and we believe that Oil prices will swing around the current levels around $90-$100.
A further rise (to the $120 area) cannot be ruled out if OPEC+ keeps the Oil flow low(er).
If OPEC+ pushes Oil prices too high, US shale will respond and could take more market share, which would be counterproductive for OPEC+ in the longer run. As such, we believe that the upside in Oil prices is limited to $120 in the long run.
Source: https://www.fxstreet.com/news/oil-upside-is-limited-to-120-in-the-long-run-nordea-202309291345