Oil Prices Could Correct to Mid-to-Low $30s Near-Term - Macquarie

In a note to clients, Macquarie Capital's Vikas Dwivedi said they believe oil prices are due for a correction back to mid-$30 to low $30 range.

"Although we are constructive over the medium and long-term, the current oil price recovery has occurred against a backdrop of weak fundamentals," Dwivedi.

The analyst notes WTI crude has rallied $13.25 per barrel since early February, a 51% increase.

From here, underappreciated bearish fundamentals plus stagnating (bullish) externalities should reverse this.

The firm if focused on the following short term factors:

You May Also Be Interested In

• Oil prices jump over 3%, near $90 on reports of explosions in Iran
• Netflix subscribers, oil prices, Bitcoin volatility - what's moving markets
• Netflix's subscribers, TSMC, Tesla upside - what's moving markets