Oil: Upside is limited to $120 in the long run – Nordea

Market news

29 September 2023

Oil: Upside is limited to $120 in the long run – Nordea

This week, Crude Brent Oil reached a peak of 97$/barrel before coming down to the 95$ area. Economists at Nordea analyze Oil’s outlook.

A further rise to the $120 area cannot be ruled out

The tightening of crude storages has supported the Oil price rally and we believe that Oil prices will swing around the current levels around $90-$100.

A further rise (to the $120 area) cannot be ruled out if OPEC+ keeps the Oil flow low(er).

If OPEC+ pushes Oil prices too high, US shale will respond and could take more market share, which would be counterproductive for OPEC+ in the longer run. As such, we believe that the upside in Oil prices is limited to $120 in the long run.

United States Michigan Consumer Sentiment Index above expectations (67.7) in September: Actual (68.1)

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