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4 May 2016
Crude oil could reach $50.00 by year-end –Rabobank
Strategist at Rabobank Christian Lawrence sees crude oil prices testing the psychological $50.00 handle toward end of 2016.
Key Quotes
“USD softness has also proved supportive for oil prices and again this is a theme we do not expect to persist for the remainder of the year and are of the view that USD will end 2016 firmer against most currencies than it stands now”.
“As such, this will weigh on oil prices and make a 60-handle in 2016 somewhat unlikely in our view”.
“On the downside, we do not expect a return to the mid-20s but instead see a move down into the mid-30s before heading back higher with an eye on the all-important psychological 50-handle by year end”.
Key Quotes
“USD softness has also proved supportive for oil prices and again this is a theme we do not expect to persist for the remainder of the year and are of the view that USD will end 2016 firmer against most currencies than it stands now”.
“As such, this will weigh on oil prices and make a 60-handle in 2016 somewhat unlikely in our view”.
“On the downside, we do not expect a return to the mid-20s but instead see a move down into the mid-30s before heading back higher with an eye on the all-important psychological 50-handle by year end”.