Oil Could Reach $80 This Summer, But There’s A Catch

SourceYahoo News
SectorOil & Gas

Oops!Something went wrong.Please try again later.Editor OilPrice.comJune 8, 2021, 3:00 PM·4 min readOops!Something went wrong.Please try again later.

After having a year to forget in 2020, the energy sector has this year emerged as the best-performing of all 11 U.S. market sectors. Energy Select Sector SPDR ETF (NYSEARCA:XLE) is up 46.2% in the year-to-date, making the broader market S&P 500’s 12% gain appear pedestrian.

Oil prices appear to have stabilized in the upper 60s with WTI price finding support around $65 per barrel while Brent is seeing support around $67 per barrel.

The sector has a successful Covid-19 vaccination rollout and gradual recovery of the global economy to thank for the resurgence, with several countries including the US and much of Europe having reopened their economies. But even more important is OPEC’s continuing production discipline with the organization sticking to earlier plans to only gradually increase production in its latest meeting. Analysts widely expect OPEC+ to reaffirm at its meeting next Tuesday...read more...