03-05-2021, 02:22 PM
(03-05-2021, 01:48 PM)vbin Wrote: Reading that oil rally just started, quants and CTAs yet to buy in.
I agree. The sector is still hated, and the draws from storage haven't even really kicked in yet.
Just wait till this summer when we have COVID pretty much in the rear-view mirror and demand returns to historical levels.
If OPEC keeps their word on production, the draws will be impressive.
Crude went from $60 to $150 in 18 months back in 2007 and 2008 and from $80 to $115 in eight months from 2010-2011. I don't see any reason why that can't happen again this year as the world recovers from the pandemic and governments print money like there's no tomorrow.