Crude prices are mirroring the rebound with Treasury yields as energy traders still see a very tight market despite all the recent virus jitters. The market could get a lot tighter if more companies follow the potential story that global miner BHP Group (NYSE:) is considering exiting the oil and business.
While the global pressure to reduce one’s carbon footprint seems to only grow, the energy market could see some supply issues over the next year and that should keep oil prices supported.
The crude demand outlook won’t improve much until the current Delta variant wave passes and vaccinations efforts improve globally. The fact remains the oil market is strongly in a deficit and that most of the world won’t commit to a big disruptive lockdown that will kill short-term crude demand. Oil prices are still likely to make a run towards USD 80 a barrel later this year.
Gold well-supported at USD 1800
prices gave up their earlier gains after...read more...