I will not be surprised if Brent@$100 in September : Peter McGuire

economictimes.indiatimes.com:

Peter McGuire, CEO, XM Australia, says “the uncertainty across the whole sector was severely sold down as far as the producers were concerned. It has rallied very strongly in the last couple of months from that early $70s all the way through to early 90s. There seems to be further upside ahead of it. Many traders are now saying $100 is achievable in September, and I would not be surprised if it takes that number out.”

What is leading to the crude rally and do you see an escalation above $90 on Brent?
Yes, a couple of things.

First off, Russia and the Saudis are rolling out those extra cuts till December. There is the great concern and that has really put more horse-power behind this big rally that we have seen over the last seven trading sessions or so. Crude is up 7-8% It has given back some of that hot steam from this morning about six or eight hours ago.

But still, we have got Brent sitting at $90.20 and WTI just short of $87. So, yes I think there is more hurt to come.

Is that what you are getting when it comes to the worries about the supply shortage after Saudi Arabia and Russia extended their supply cuts to the end of the year?
Well, there is the first part of it, yes. It is really going to impact prices.

So we understand their conditions, what they are trying to achieve and naturally, I think the uncertainty across the whole sector was severely sold down as far as the producers were concerned. It has rallied very strongly in the last couple of months from that early $70s all the way through to early 90s. There seems to be further upside ahead of it.