The Bullish And Bearish Case For Oil - Nick Cunningham

Always happy to see opposing viewpoints examined by a knowledgeable observer.  I've been reading Nick Cunningham's musings for a long time, here are his latest observations. 

In one corner we have $60, and in the other corner we have $100.

The Bullish And Bearish Case For Oil

The bearish case

... The U.S. Federal Reserve is hiking interest rates, which is putting pressure on indebted countries, making debt harder to pay off, particularly as their currencies weaken relative to the dollar. This is by no means a foregone conclusion, but an economic downturn could cut into demand. Bank of America Merrill Lynch said that it is conceivable that oil drops to $60 per barrelin 2019 because of emerging market dangers. ...

The bullish case

... “Now it’s getting interesting,” hedge fund manager Pierre Andurand told the Wall Street Journal earlier this month. “We are in the middle of a multiyear bull run,” he said. “We could see $100 oil this year…$150-plus in 2020-2021.”

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