Crude price likely to hover between $100-110 per barrel: Fat Prophets' David Lennox

Crude was trading at a 14 year highs – it has touched $139 a barrel but as of now it is trading at a two-week low. Prices have come off considerably and that is as Russia- Ukraine claim that there is progress in the peace talks.

David Lennox of Fat Prophets believes that crude will be in the range of $100-$110 in the coming quarters.

He said, “We think that if you have a look at the oil price, it's probably going to settle weekly, probably a little closer to between $100 and $110. We have lifted up our base price a little bit, we thought it might be enough $95. But we have lifted it a little bit given that we are concerned more about what is happening in China and COVID.”

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Lennox said, “We do expect as we hear the rhetoric increasing that perhaps there is a good possibility of a geopolitical settlement in between the Ukraine and Russia, we will start to see that war premium, certainly back out of the oil price. That has already started to happen as the markets look beyond what is happening in that part of the world at the moment.”

He added, “There are other factors that are driving that oil price, and we think it could drive at higher and that is obviously Shanghai go into lockdown. We are all well aware of how contagious COVID is, and that could broadly spread across the rest of the country quite quickly. So we are concerned about that at the moment as well.”