Standard Chartered: the fundamentals are not strong enough for oil prices to grow above $100

Economic factors haven’t supported the prices above $100 per barrel yet, but it is possible to maintain the level of trade above $90 per barrel for a long time.

In accordance with the Standard Chartered report, the sudden drop in oil in the first two days of this year has been followed by a sustained increase in oil thereafter.

Based on published data, the rally was well received by traders.

Additionally, the report reveals a 23.2 increase in the crude oil positioning index to -39.6 in a week. After a price low in April 2020, it’s the biggest weekly adjustment.

Analysts add that traders are now less worried about a recession in the OECD. On the contrary, they are now more convinced about further growth in demand, especially from China and India. The report predicts a continued rally due to a fairly balanced market.