Oil prices are rising, but it’s still possible in the market. mood swings, warns UBS
The mood in the oil market has moved quickly enough from enthusiastic pessimism - players who were previously concerned the filling of oil storage facilities, now expect price increases due to hopes for a recovery in demand and a decline in production. UBS, however, warns against being overly optimistic. The company experts point out that the pace of recovery demand for oil in the second half of the year cannot be predicted. You shouldn't. to focus on increasing demand for gasoline because of possible changes in customer behavior isn't very good. reliable indicator. Premature rise in quotes can again to lead to increased stocks. In the face of collapsing prices. the producers were forced to reduce production, but with their they can build it up again. It'll have a negative impact on the moods of the players whose optimism is being maintained exactly reduction in production, UBS said. In general, the company expects the price of Brent grade to rise to $43. by the end of the year.