Oil Market Tightness Depends on OPEC+ Discipline, With Prices Possibly Approaching $100
• Global observed oil stocks plummeted by about 60 mb in January, with on-land inventories falling to their lowest level since 2016.
• Whether oil markets will continue tightening depends on if OPEC+ can maintain discipline and gradually unwind production cuts.
• Estimates for changes in the call on OPEC production levels vary widely between agencies.
• Standard Chartered argues oil fundamentals are in better shape than prices suggest, with Brent possibly approaching $100.
• EIA projects lower Brent and WTI prices of $82 and $78 in 2024, while JPM sees prices rising $10 by May.