FXStreet reports that strategists at TD Securities are optimistic on the oil market into 2021.

“In sharp contrast to what many bulls were looking for following an accretive OPEC+ meeting, the EIA report showed crude oil inventories unexpectedly jumped a record 15.19 million bbls vs an expected one million bbl decline.”

“In the short run, the raging pandemic and the associated rising death toll will very likely continue to keep demand weak, as it will take time to deploy the highly effective vaccines.”

 “TD Securities sees WTI approaching $50/b, once the economy normalizes. The Biden Administration and other major economies around the world will want to provide sizable stimulus, which is expected to drive demand higher in the US and around the world. At the same time, OPEC + is likely to increase production in a way such that the current excessive inventories continue to be unwound, with US shale and other producers only mustering modest supply gains for the foreseeable future.”