There have been increased talks of a tight oil market in the second half of the year. SEB thinks that OPEC will not think twice about producing more if tight supply runs the risk of hurting the global economy.
They think OPEC would relish the opportunity to produce more oil and still being able to get close to $85 for it.
Thus, SEB expects OPEC to step in with verbal intervention if oil prices get close to $100.
Interesting to note that TS Lombard was also out with a note yesterday and their view is that there is little chance that OPEC+ will be inclined to provide relief for global oil prices.
