Oil: Brent eyeing $40 by year-end – OCBC

OCBC Bank’s strategists think the current oil rally needs to take a breath though the price is expected to hit $40 by year-end.

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Key quotes

“With Brent now having tested the $35/bbl resistance, we maintain our view that this bull run is in need of a breather, albeit short-lived.”

“The lacklustre crack margins are a sign that oil prices have run up too fast, and more time is needed for downstream prices to rise given that reopening of economies is just starting.” 

“Beyond the short-term we remain bullish on prices, with an eye on Brent closing at around $40/bbl by the end of 2020.”