Oil prices could come gushing back.
At the moment, crude is just under $79.
However, with supply issues, and demand likely to ramp up on China reopening, oil could run back above $90 in a hurry. As noted by OilPrice.com, “Following the initial exit Covid wave after the strictest curbs were lifted, Chinese oil demand is set to rebound from the second quarter onwards, also raising global oil demand for this year, many analysts say.”
According to hedge fund manager Pierre Andurand, oil could run to $140 if Asian economies see a full reopening, as noted by MarketWatch.com. Ninepoint Partners LP, has told the Financial Post that oil prices could run back to $100. That being said, investors may want to keep an eye on oil stocks, such as Northern Oil and Gas (NOG), which is just starting to pivot from double bottom support around $29. We’d like to see it closer to $37 if oil prices do gush higher.