Brent crude was trading at $94.53 per barrel on Monday, while WTI was trading at $91.81.
Reuters reported that Nigerian Qua Iboe crude surpassed $100 per barrel on Monday, while Malaysian Tapis crude had already done so last week, citing Swedish bank SEB analyst Bjarne Schieldrop as saying in a report that “Saudi Arabia and Russia are in solid control of the oil market.”
OPEC Attacks the IEA Over Claims of Peak Fossil Fuel DemandOil is already trading at its highest level of the year, with investors betting on tight supply and excess demand in the fourth quarter as a result of production cut extensions by both Saudi Arabia and Russia, OPEC+’s two major producers.
The Swedish bank expert also projected that Brent will surpass $100 because a rally to that level would require only “noise.”
Schieldrop believes dated Brent will climb above $100 because “only noise is needed to bring it above.”
Brent futures are expected to reach the triple digits, according to Swiss bank UBS.UBS sees Brent trading in the $90-$100 area, with a target price of $95 by the end of the year, while Standard Chartered analysts anticipate $93 per barrel, but do not rule out a Q4 surge above $100.
CitiGroup cautioned on Monday that while geopolitics could move prices past $100 in the short-term, “$90 prices look unsustainable” and a withdrawal from the rally is expected as supply builds. Citi noted that non-OPEC supply is expected to increase by 1.8 million barrels per day this year and another 1 million bpd in 2024, with the U.S. set to add 900,000 bpd this year and 400,000 bpd next year, Bloomberg reports.