Look Past OPEC Freeze Hype to Really Understand Oil’s Advance
- Fading contango is clearest sign of recovery: Credit Suisse
- Market moving from massive surplus to balance: BofAML’s Blanch
BofAML's Blanch: Oil Will Hit $55 by Year End
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For all the feverish speculation of OPEC action that’s roiling oil markets, the real reason for crude’s recent recovery probably lies elsewhere.
Oil futures have rallied more than 10 percent since the Organization of Petroleum Exporting Countries said it would hold informal talks in Algeria in late September, fueling expectations it could revive a pact on freezing production. Banks from Citigroup Inc. to Bank of America Merrill Lynch see a simpler explanation for the rebound: the global oil oversupply is finally dissipating.