by Thomas H. Kee Jr.
The fun money has been made in the oil space, and from here it is likely to be much more of a struggle, so it’s time to turn our focus elsewhere.
We expect oil prices to stall, perhaps unable to press higher beyond $50.00 in a meaningful fashion, but that doesn’t mean they will decline meaningfully either. Over time, we expect oil prices to move higher, but over a medium-term time frame, meaning months, we would not be surprised to see oil prices basically fall flat around current levels.
Based on ever-changing news events, oil prices will be volatile, as supply disruptions will cause oil prices to increase and demand issues will persist. Although everyone thinks OPEC is no longer able or willing to influence prices, they certainly are and can, so don’t count them out, but all this is going to do is influence volatility in a much more confined range.