Brent Oil has the $100 level in its crosshairs as OPEC+ refrains new supply – TDS

OPEC+ members decided to stick to raising output by 400,000 barrels per day and not more. In the opinion fo strategists at TD Securities, OPEC+ status-quo production hike may be fodder for $100 Brent Crude Oil.

Disappointing news for those hoping for an extraordinary output hike in oil

“OPEC+ plans to increase output by 400k b/d per month for November, resulting in surging energy supply risk in the near-term as OPEC infers less of a knock-on impact from the natural gas shortage for oil and petroleum product demand than the market's assessment.” 

“Delta-variant risks have proved benign, while growing departure levels suggest air traffic will continue to support jet fuel demand across both APAC and the US. This supports a tight supply-demand outlook that is particularly fueling upside momentum in Brent crude and heating oil.”

“With demand for fuel rising, crude and petroleum product markets, particularly Brent, heating oil and fuel oils, are likely to get tighter and prices higher. Should this trend continue, specs may be eyeing $100/b crude as the next big level.”