Oil: Selling pressure in the coming weeks – OCBC

The gains that WTI and Brent crude have posted since their lows on 28 April, barely three weeks ago, are likely to see a correction, in the opinion of Howie Lee from OCBC Bank.

Key quotes

“There are some signs that the rally in crude oil has been too fast, too furious, and a correction might be imminent after the heady gains from the past three weeks.” 

“Beyond the near-term, we think crude oil is set to continue rallying, with Brent possibly headed for $40/bbl before the year ends – but in the coming week or two, we see some selling pressure forming.”