The oil market is going to be rangebound. Two weeks ago, I had already shared my thoughts on where the oil market is headed. In the article, I wrote: Looking ahead, my thinking is that refining margins will fall. Demand destruction is real and we are seeing some of that take hold now. With the ~5 million b/d of the expected increase in refinery throughput, I think refining margins fall back to $35/bbl or -$18/bbl from today. The end-user price assuming crude stays flat at $120 is then $155/bbl. This should give crude some room to rally. We could see as high as $135/bbl or $170 end-user price if demand holds up, but that's likely the top of the range.
The Oil Market Is Going To Be Rangebound
The Oil Market Is Going To Be Rangebound
The Oil Market Is Going To Be Rangebound
The oil market is going to be rangebound. Two weeks ago, I had already shared my thoughts on where the oil market is headed. In the article, I wrote: Looking ahead, my thinking is that refining margins will fall. Demand destruction is real and we are seeing some of that take hold now. With the ~5 million b/d of the expected increase in refinery throughput, I think refining margins fall back to $35/bbl or -$18/bbl from today. The end-user price assuming crude stays flat at $120 is then $155/bbl. This should give crude some room to rally. We could see as high as $135/bbl or $170 end-user price if demand holds up, but that's likely the top of the range.