Oil Ends Session at Two-Month High in Volatile, Thin Trading
- Tight product supply balances bolster bullish case for oil
- Goldman Sachs, Morgan Stanley still bullish on oil’s outlook
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Oil settled at the highest level since March after a volatile session in which investors toggled between bullish underlying fundamentals and fears of taking on risk due to inflationary concerns.
West Texas Intermediate topped $120 a barrel, with the market putting greater weight on bullish fundamentals. Goldman Sachs Group Inc. boosted its quarterly price estimates saying that crude needs to rally further to achieve the demand destruction required for market re-balancing. Morgan Stanley added that it sees upside to its bull case estimate of $150 a barrel in the third quarter.