Oil prices bounce higher but direction not clear yet – TDS

WTI crude prices are back above $95. However, direction is not clear yet, in the view of strategists at TD Securities.

The big uncertainty is demand

“While we believe the risks have convincingly tilted to the upside, the possibility that Iran may still remove its new conditions to make the deal with the US possible, and the uncertainty surrounding demand next year leave us unwilling to upgrade our forecast just yet. But we are thinking hard about it.”

“The Saudis and friends seem ready to adjust supply quickly in order to keep prices high. They don’t need to worry about competition from US shale or Russia. The end of the US strategic petroleum reserve release program also represents a risk of higher price over the winter.”