Brent Oil To Advance In 2024

 Brent Oil To Advance In 2024

Brent Oil To Reach $90 In 2H2024, According To Commerzbank

If we compare the current price of Brent oil with its yearly opening price, it is trading with a -10 % difference. Against this backdrop, the Commerzbank analysts believe that Brent oil will turn higher and reach the $90 price target in the 2nd half of 2024.

By the end of the 2024's first quarter, Commerzbank believes that WTI prices will be around $75. Given that the WTI is currently trading near $70, it appears that the WTI will still only manage a little upside in the next 3 months.

Oil Supply Cuts To Continue In 2024

On the fundamental side, the production cuts from the OPEC+ members will continue, which will enable the oil markets to remain supported. So, despite the weak expected demand in the first few months of 2024, the oil market will continue to trade with a little upside.

In fact, the Commerzbank analysts believe that the oil cuts will correct any problems arising from the oversupply. As a result, there's a good chance that the oil prices will touch $80 during the Q1.

In addition, the demand for oil will likely rise in the 2nd half of 2024, while the supply deficit will increase due to the supply cuts. All of this will set the stage for Brent oil to touch or even cross the $90 threshold. However, that could only happen in the 2H 2024, which is still 6-7 months away.

As for the WTI, Commerzbank has set a price target of $75 for the Q 2024. As for the 2H 2024, Commerzbank has issued a forecast of $85 for the WTI oil.

In short, the WTI will rise to $85 while the Brent will rise to $90 in the second half of the year 2024. One thing to note here is that Commerzbank didn't set a target of $100 or higher. This is a sign that despite all the supply cuts, the prices of oil will still remain capped under the $100 threshold.

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