Highlights Entering 2H21, oil and metals' price volatility will rise as inventories are drawn down to cover physical supply deficits brought about by the re-opening of major economies ex-China. As demand increases and oil and…
Historically, the performance of global oil & gas equities moved in lockstep with crude oil prices. However, this relationship disconnected last year. Since then, the absolute performance of oil and gas equities has lagged…
BCA Research’s Commodity & Energy Strategy service raised their average Brent forecast for 2021 to $66.50 vs. $63/bbl earlier, with 2H21 prices averaging $70/bbl. They also moved their 2022 and 2023 forecasts up…
Highlights Oil demand expectations remain high. Realized demand continues to disappoint. This means OPEC 2.0's production-management strategy – i.e., keeping the level of supply below demand – will continue to dictate…
Highlights US labor-market disappointments notwithstanding, the global recovery being propelled by real GDP growth in the world's major economies is on track to be the strongest in 80 years. This growth will fuel commodity demand,…
OPEC 2.0 offered no surprises to markets this week, as it remained committed to returning just over 2mm b/d of production to the market over the May-July period, 70% of which comes from the Kingdom of Saudi Arabia, according to…
Highlights Political and corporate climate activism will increase the cost of developing the resources required to produce and deliver energy going forward – e.g., oil and gas wells; pipelines; copper mines, and refineries. Over…
Dear Client, In lieu of our regular report next week, I will be holding a webcast with my colleague Dhaval Joshi to discuss the future of cryptocurrencies. Dhaval thinks the price of Bitcoin is going to $125,000. I agree with the last…
Highlights China's high-profile jawboning draws attention to tightness in metals markets, and raises the odds the State Reserve Board (SRB) will release some of its massive copper and aluminum stockpiles in the near future. Over…
BCA Research’s Commodity & Energy Strategy service lifted its 2021 Brent forecast back to $63/bbl from $60/bbl, and raised its 2022 and 2023 forecasts to $75 and $78/bbl, respectively. Global oil markets will remain…