The petroleum complex is set to firm into the summer, according to strategists at TD Securities. They expect oil prices to surge above the $120 level.

Impact of higher interest rates to determine when oil is going beyond the summer

“Very low product and crude inventories, wide cracks, geopolitical risk and uncertainty surrounding OPEC's ability to deliver meaningful supply increases may well see WTI and Brent benchmarks spike well above the $120/b mark as summer demand peaks.”

“For balance of 2022, only much larger-than-expected demand declines can bring crude materially below $100/b. As such, the For balance of 2022, only much larger-than-expected demand declines can bring crude materially below $100/b. As such, the impact of higher interest rates should be closely followed by traders to determine when oil is going beyond the summer.”