UBS Increases Its Outlook for Oil
China’s April Manufacturing PMI data will be the key.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
UBS UBS has raised its oil price forecasts by $5 per barrel (bbl.), estimating Brent to hold a range of $85–$95/bbl., and West Texas Intermediate in the $80–$90/bbl. range over the coming months.
This is yet another upwardly revised forecast and as the supply-demand imbalance continues, odds are there will be a few others as well.
Next week’s March Industrial Production data will give us some insight into the domestic demand profile, but a potentially bigger data point will be China’s April Manufacturing PMI data.
If that ticks higher, it will be a sign that the supply-demand imbalance is likely to tighten further, sending oil prices higher. That will stoke inflation pressures but it should also drive our Energy Select Sector SPDR Fund XLE shares higher.
At the time of publication, TheStreet Pro Portfolio was long UBS, XLE.
