$70 Brent is Goldilocks perfect for the next couple years
Tom KirkmanIndependent Project Manager
Yep, agreed. 2019 is turning out to be good for the overall global oil & gas industry, and I’ve been saying this for over a year now.
Slow, steady, upward recovery and re-balancing around $70 oil [Brent] seems absolutely perfect to me. Not too high, not too low. A suitable balance between global oil producers and global oil consumers. Win-win.
Enough with the crazy roller coaster price swings. $100+ oil is not sustainable, and neither is $40- oil. $70 oil is *just right* for the next couple of years – Goldilocks perfect.
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“Conclusion
The consistent backing and filling during the crude oil market rally is a strong indication that investors are coming in on the breaks. This is because the OPEC-led supply cuts are continuing to provide a reason to be long this market. Traders have been hesitant to buy strength or a breakout to the upside because of lingering uncertainties over demand.
This is a perfectly acceptable chart pattern because it suggests professionals are coming in on the weakness and riding the market higher. Speculators tend to buy strength aggressively. As long as the professional money managers are consistent, the rally should continue over the near-term.”