Enough reasons to rekindle the US$100/b oil debate

A SQUEEZE in global supply and demand revival at an unusually higher rate has rekindled the debate on the possibility of oil crossing the US$100 a barrel threshold yet again despite headwinds.

As growth in jet fuel consumption springs a surprise, pulling up overall demand, oil markets are going to witness a scenario for the rest of the year in which demand growth could outpace supply growth. For now, it looks like global oil stock draws are expected to level off and eventually turn into builds only in early 2024.

As a result, while daily Platts Dated Brent reaching US$100/b cannot be ruled out, prices are unlikely to stay at that high level for long in the short run. We expect oil prices to moderate by the end of the year, and particularly Q1 2024.