WTI Oil Prices to Hit $75 Before End of Year, Says Raymond James

Following Saudi Arabia’s surprise announcement last week that it would cut another 1.0 million b/d in crude oil output in April – after similar cuts in February and March – Raymond James & Associates Inc. analysts raised their price expectations as supply/demand further tightens this spring.

In addition to Saudi Arabia’s efforts, members of the Organization of the Petroleum Exporting Countries and its allies, aka OPEC-plus, agreed last Thursday to hold the line on oil production through April.

“Our strip scenario still sees substantial draws in both 2021 and 2022 — on the order of several million barrels per day for the next two years,” Raymond James analyst John Freeman said. “Clearly, even to a casual observer of oil markets, draws of this magnitude cannot exist...