Saxo Bank Forecasts Year End Oil "In the 80's"

China’s underwhelming demand return has “been a surprise” according to Saxo banks Head of Commodity Strategy Ole Hansen.

• “We haven’t seen the same pickup as expected in things like air travel” Hansen said.
• On Saudi’s recent voluntary cuts, Hansen referred to them as “a pre-emptive strike” with the IEA and OPEC expecting global demand to recover in the third quarter. “Perhaps they are seeing signs that is not coming into fruition” he said and that OPEC’s latest measures were to stop prices dropping below $70/bbl.
• Saxo bank forecasts oil prices back into the 80’s by the end of the year. “We will see a recession in the US this year while China cannot afford not to do further stimulus measures – we are still looking for demand to recover into the second half – the high flying estimates for 100+ [per bbl] have died a sudden death.”