- OPEC expects global oil markets to remain well-supported this year by robust demand
- The group has maintained a confident outlook that allows the group to continue to revive production
- Brent, WTI prices climbed to their highest since 2014 as demand has been resilient despite Omicron, and supply disruptions have continued to tighten the supply-demand backdrop
- OPEC+ has continued to underperform versus its quotas, another bullish catalyst affecting oil markets. The group increased output by 166 MBbl/d in December, in contrast with its target of 250 MBbl/d
- AEGIS notes that OPEC’s inability to meet its quotas has caused many market analysts to question how much spare capacity the group is really holding back
- Goldman sees $100/bbl Brent by 3Q2022, $96/bbl average for 2022
- The group says robust fundamentals have helped reverse last year’s selloff. Demand has been quite resilient, while supply disruptions have aided the drawdown in global inventories
- By summer, OECD inventories will be at the lowest level since 2000, and OPEC+ spare capacity will be near historically low levels of 1.2 MMBbl/d