The Bullish And Bearish Case For Crude Oil Right Now

In the past few weeks crude oil prices have moved substantially higher from the sub $45 mark that it touched recently. Now at above $55, the Street is divided that whether it can move further up or will this we are approaching the ceiling for this move.

Neal Dingmann, Analyst at Suntrust Robinson Humphrey, and Kent Moors from Global Energy Symposium, were on CNBC recently to talk about their respective bearish and bullish case for oil.

Bull Side

“I think we have a restrained upside though moving forward,” Moors said. “The interesting thing is that this has always been a supply and demand situation, but for the first time in memory we don’t have to worry about the supply side.”

He continued, “You know there’s plenty of additional supply to bring on line. So, I am seeing a gradual increase to about $70 to $73 a barrel Brent, $60 to $65 for WTI by mid-July, but those are actually going to extend to the end of the year and we could actually see prices in excess of $80 by Brent by the time we get to December.”

Bear Side

Dingmann  was asked if this rebound in crude oil prices has run out of steam. He replied, “Yes in the near-term..The number of wells out there that have been drilled, but not completed today it’s about 8 to 10 times the normal. Generally we have about 5 to 600 of these wells in the U.S., today that number stands at about some reports say it’s as high as 5,000.”

“So, my thoughts are if oil hits $60 you are […] going to have lots of these unconventional U.S. wells come on very quickly.”