Oil market set enjoy a period of respite – Commerzbank

After dipping below $90, the price of a barrel of Brent has recovered to $95 again. If neither the Fed nor China’s government resort to unexpectedly tough measures, the oil market is set to take a breather, strategists at Commerzbank report.

Oil price to remain at $95 in the short-term

“The price is likely to remain at $95 in the short-term, which will presumably deter OPEC+ from cutting production.”

“Lower prices can probably only be expected if the Fed hikes interest rates even more sharply or renewed anti-covid measures are put in place in China, which would cool demand in one of the two key markets.”