Despite the recent slide, strategists at UBS see crude prices as being well supported. They expect oil to reach around $125/bbl by June, only gradually declining back to $105 by the end of the year.

Crude is well supported despite drop

“Russian oil exports and production will be impacted by sanctions and select import bans, further tightening global supplies. We expect the hit to Russian oil exports and production to become more apparent later this month.”

“The resulting reduction in global output will be hard to offset, either by other producers or by releases from government stockpiles.”

“Global oil demand is still headed for record highs in the second half of the year. We are still expecting global oil demand to hit a record high in the second of the year, at over 101 million barrels a day.”

“We expect oil to reach around $125/bbl by June, only gradually declining back to $105 by the end of the year. Crude and energy stocks remain a hedge against the conflict in Ukraine.”