Upside in Oil remains amid an undersupplied market, according to strategists at UBS.

Several main reasons to expect the Oil market to be under supplied in coming months

“We now see the Brent price reaching $95 a barrel by the end of this year, down from our previous forecast of $105/bbl, as we expect Russian oil output to stay at around 9.6 million barrels per day (mbpd) instead of 9 mbpd in the second half of this year. However, this means an upside of over 25% from current levels.”

“We still see several main reasons to expect the Oil market to be under supplied in coming months: The International Energy Agency sees robust global Oil demand. Inventory draws are set to be more visible in the months ahead. OPEC+ cuts should tighten the market further amid other supply constraints.”