Oil Prices Are Primed to Rally -- It's Time to Buy the Dip
Oil prices have gone on a roller-coaster ride this year. Brent, which is the global oil benchmark, has bounced around between the low $70s and high $80s. However, crude oil appears primed for a breakout rally during the second half.
The International Energy Agency's (IEA) oil market outlook fuels that view. The firm recently released its May report, which noted that global oil demand is stronger than expected. With expectations for muted supply, oil prices could heat up this summer, which would be a boon for oil stocks.
The IEA now forecasts global oil demand to grow by 2.2 million barrels per day (BPD) in 2023, averaging 102 million BPD. That's 200,000 BPD higher than its forecast last month. The IEA noted, "China's demand recovery continues to surpass expectations, with the country setting an all-time record in March at 16 million BPD."
Source Fool.com
