Why Everyone Thinks Oil Is Heading Higher In 2 Big Charts

If you look at all of the bullish cases for oil, they all revolve around the relatively tight supply and the robust demand, which will at a minimum keep prices from dropping too much.

In a presentation, Morgan Stanley’s Hussein Allidina spells it out.

These two slides are the key.

supply

Photo: Morgan Stanley

And this one considers Morgan Stanley’s TOAST (bearish: tough oil and soggy trade) scenario, and even then things would still be tight.

supply

Photo: Morgan Stanley

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