How To Play The Oil and Gas Bull Run

After a volatile period of reversals, the oil price rally is back with a bang as oil prices continue taking out multi-year highs. Bullish sentiment has taken over oil markets, with Brent breaking out above $80 for its best level since October 2018 while WTI was quoted at $75.64/bbl on Tuesday intraday trading, scoring the highest settlement since July. However, as with every other sector, there’s a pretty big dichotomy in Wall Street regarding the oil price outlook, with both strongly bullish forecasts for even higher highs as well as strongly bearish views predicting a sharp oil price pullback.

The good news: Wall Street remains largely bullish about the the oil price trajectory.

Goldman Sachs has become the latest punter to weigh in with a pretty solid bullish thesis.

“Brent oil prices have reached new highs since 2018, and we forecast that this rally will continue, with our year-end Brent forecast of $90/bbl vs $80/bbl previously. While we have long held a bullish oil view, the current global oil supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above consensus forecast and with global supply remaining short of our consensus forecasts.”

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Source: OilPrice