ICICI Securities: Vaccine Hopes Drive Oil Prices Up; OPEC+ Also Does Its Part
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Brent is up 34% from lows in end-October 2020 driven by hope that Covid-19 vaccines would lead to demand recovery.
The oil price surge is despite second wave of Covid in Europe and U.S. (which has led to demand recovery reversal), and surge in Libyan oil output from 0.1 million barrel per day to 1.25 million barrel per day.
Biden administration lifting U.S. sanctions on Iran oil exports is another risk. U.S. oil rig count is up 40% from lows in mid-August 2020, which together with high oil prices may drive further recovery in U.S. oil output.
OPEC+ deciding to raise output from January 2021 more modestly than earlier agreed is likely to ensure global supply deficit even in Q1 CY21E.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.