- Oil futures were little changed Tuesday after closing 1.5% higher on Monday
- A demand boost to oil is being triggered by a need for alternative power generation fuels like diesel and fuel oil
- OPEC+’s conservative approach to adding back supply is also adding upward pressure to price
- UBS increased its oil-price forecasts by $5/Bbl across all tenors (Bloomberg)
- WTI is seen at about $77/Bbl over the next 12 months, wrote analysts including Giovanni Staunovo
- The bank said with oil inventories seen falling at a fast pace over the coming weeks; Brent could re-test Oct. 2018’s high of $86.74/Bbl
- Gas-to-oil switching could add 500 MBbl/d, and a boost from more flights to the U.S. could add 100 MBbl/d of demand in 4Q 2021 and 1Q 2022