The Oil market should be significantly undersupplied in the second half of the year and inventories should continue to fall appreciably in the coming months.

Demand concerns stand in the way of a further price increase. For example, the economic recovery in China has noticeably lost momentum, so Oil demand should rise more slowly from now on. Oil demand in the US and Europe is likely to be curbed by the expected recession.

We see only limited upside potential for the price of Crude Oil in the short term and a price level of $85 per barrel at the end of the year.