"the oil cycle will price higher until it finds a level of demand destruction,” Michael Tran, commodity and digital intelligence strategist at RBC Capital Markets wrote in an analyst note on Monday. “It simply does not get more bullish than that.”
The bank sees oil hitting $115 per barrel or higher this summer.
“Historically, markets led higher by tightening product and crude inventories are difficult to solve absent a demand destruction event or a supply surge, neither of which appears to be on the horizon,” Tran wrote.
US suffers from supply curtailment from the closing of the XL pipeline, the failure to complete
the Keystone pipeline, the closing of drilling in ANWAR and the closing of drilling on Federal Lands.
How can the level of inflation decrease if Oil goes above $100???
