Goldman Sachs oil bull Jeff Curie is retiring after 27 years this week and what a sendoff the latest price action is in crude. He predicted higher oil prices all year and they have certainly arrived with crude today touching $94.17. Brent rose as high as $97.06.
Prompt spreads (CL1 vs CL2) have been widening rapidly, including +90-cents today and that highlights how crude is flowing out of storage. If that wasn’t enough, risk assets throughout the world are getting beaten up this month and crude is going higher and higher. That’s a strong sign of independent tightness in the oil market and that’s backed up by estimates showing 2-3 million barrels per day underproduction.
As for what’s next, a big round number like $100 tends to act as a major magnet and at this point, it’s hard to imagine we won’t get there, at least in brent.
In terms of headlines, risks are certainly to the downside and OPEC+ is going to face pressure to pump more above $100. I’d be shocked though if they don’t push their luck.
WTI crude oil daily