$120 oil may be only seven months away

Bank of American and Goldman Sachs with some bullish comments

The OPEC+ decision is on Thursday and another 400k/bpd is expected to be added as OPEC sticks to the script. There’s some tail risk they could add more as the US and others lean on them.

WTI is up 51-cents to $84.08 and rose as high as $84.88.

One note that’s getting some attention today is from Bank of America, where analysts say $120 oil could arrive by June.

They cite a potential for surging gasoline demand along with jet fuel.

Goldman Sachs also highlights an increasingly bullish backdrop.

“We estimate that oil demand is nearing 100 million b/d, its pre-COVID level, with winter seasonality and the recovery in international jet demand set to bring demand to record highs by early next year,” they wrote today.

The biggest tell might be the increasing backwardation in the crude market. That’s a sign that oil is being rapidly pulled from inventories.

On another commodity front, European wheat is challenging the 2008 all-time high.

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