National Bank of Canada: Geopolitics to have an outsized impact on oil prices

National Bank of Canada research team suggests that the latest geopolitical events from across the globe are likely to support their $65 oil forecasts.

Key Quotes

“The combined effects of sanctions on Iran’s and Venezuela’s oil sectors, Saudi Arabia’s need to push oil prices up in order to get its finances in order, and of the recent agreement by OPEC and other countries to cut production means that geopolitics geopolitics could have an outsized impact on oil prices over the next several months.”

“These developments support a $65 (WTI) oil forecast by the NBF Economics and Strategy Group.”