UBS Analysis- Energy: Crude oil: The OPEC+ put

As analysis by Giovanni Staunovo, Wayne Gordon, and Dominic Schnider, Strategists, UBS Global Wealth Management following the Saudi energy minister indicating that there is a disconnect between futures prices and fundamentals, and that OPEC+ could cut production, bringing the OPEC+ put back in play.

UBS forecasts Brent’s rebound to USD 125/bbl over the coming months, amid tight supplies, dwindling spare capacity, and low oil inventories; continuing to advise risk-taking investors to add long positions in longer- dated Brent oil contracts or sell Brent’s downside price risk.

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