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On CNBC, Matt Smith of Kpler said people are expecting very strong demand for oil amid reopening in China, which could send the oil prices into triple digits, but he believes that there’s a very “bumpy road” to get there.
Kpler said although he sees strength in oil prices and oil demand to be price supportive into the second half of the year, but the challenge is going to be before that period due to the COVID-19 pandemic in the country.
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As long as crude oil prices remain around the $80-per-barrel level, the Organization of the Petroleum Exporting Countries (OPEC) is not likely to take any action, as the group is focused on stability in prices, he said.
Although the OPEC will monitor number of things, including reopening in China, the situation in Russia and recessionary conditions in the West, the group will “not to do anything at least for the next couple of months,” Kpler added.
Energy stocks, including Phillips 66 PSX and Chevron Corporation CVX added 0.2% and 0.3%, respectively on Friday, while Exxon Mobil Corporation XOM lost 0.1% during the session.
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Photo via Shutterstock.
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Image and article originally from www.benzinga.com. Read the original article here.