Is the oil rally cooked?

Tuesday, 23 March 2021

I have been bullish on oil because I expected it would take a little more time to break supply discipline than in the past as a strong demand rebound was underway. Make no mistake, oil is a very manipulated market so supply discipline is the only question that matters given a recovery in demand. Cornerstone sums up the bullish view:

NEWS–once again Saudi Arabia boosts oil prices[JanuaryOpec QT]:

Saudi Arabia’s Prince Abdelaziz bin Salman delivered another big bullish surprise. Contrary to ex-pectations, the Opec+ coalition of sovereign producers decided not to raise crude oil supply yet.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.