WTI plunged nearly seven percent on Wednesday as it fell to just above $66/bbl for the first time since December 2021. Notwithstanding the outsized large correction and the potential of another sharp drop, strategists at TD Securities have not given up on oil for the longer term just yet.

A move to the low-$60 or slightly below is well within the realm of possibilities

“Crude could well move much lower than the fundamentals suggest, while systemic worries continue. A move to the low-$60 or slightly below is well within the realm of possibilities. Of course, an outright financial crisis could send oil much lower.”

“While it's hard to say what happens on the monetary policy and financial risk front in the short run and how worried investors will be over demand, we judge that the long term looks positive for crude. As such, $90+ WTI is still possible at the end of 2023.”