Banks calling for an oil “supercycle” have said the 15 per cent tumble in the price of crude in recent weeks marks a pause rather than the end of what they see as a sustained move higher.
Traders were betting that demand would rebound sharply as Covid-19 vaccines rolled out around the world, but delays to inoculations and stricter lockdowns in Europe have hit short-term oil consumption, while growing inflation concerns unsettled wider financial markets. New hedge fund bets on rising oil prices have slowed sharply in recent weeks, according to exchange and regulatory data.
But banks including JPMorgan, Goldman Sachs and Barclays have in recent days either reiterated their long-term bull case for oil or even increased their forecasts for prices.
PetroNeft Resources plc (LON:PTR) is an international oil and gas exploration and production company, focussed on Russia. The company’s shares are listed on the London AIM and Dublin ESM Markets.