An oil animal sees a "big, threatening" risk that bubbles up in the energy market.
RBC Capital Markets & # 39; Helima Croft, the company's Global Head of Commodity Strategy, is generally bullish on the oil price.
She sees OPEC's commitment to production cuts, US sanctions against Iran and Venezuela, and the general demand for crude oil as healthy drivers of the oil price, which has taken
But there is a great risk that could threaten this last wave, and Croft told CNBC in an interview on " Futures Now. "
" "The Bear case [for oil] continues fear of global demand," says Croft on Thursday. "It is a very big headwind for many people on oil. They are very concerned about where trade conversations go. They are very concerned with potentially weak numbers out of China; what does that mean for oil demand? So I really believe that demand history is the big one , threatening the negative flash of oil. I think it's a bit of all the fears about the oil market. "
The fear of an oil glide is not new. In February, the International Energy Agency warned that global oil supply was on track to exceed demand despite global production cuts and US sanctions.
Nevertheless, bearish watchers have taken these concerns back into the conversation with Croft, she said, as trade negotiations in the United States and China apparently become more complicated and tensions between Washington and Saudi Arabia come under
"It's a bit of a bold fear For President Trump to get the phone to Saudi Arabia and put pressure on the Saudis and say, "You call this OPEC cut," Croft said. "[Bears] look at something like the NOPEC bill that would declare OPEC a cartel, and they say, "If it moves through the congress, OPEC will still want to do with the cuts, or will they be so afraid that Washington will break them up that they essentially abandon the production?" 1[ads1]9659003] Still, Croft is not entirely in the bear camp. US commodity prices have traded nearly four months high on several bullish factors, including OPEC's willingness to keep lower end production and falling US stocks, and she sees the strength continued after the short term.
"The question is, what does Donald Trump do in May? Does he try to get more Iranian exports out of the market? Does he also try to impose secondary sanctions on Venezuela and force Venezuelan importers out of the market? She asked." kind of bullet stories for oil. "
Croft's near-term goal is between $ 56.50 and $ 63.59 for US West Texas Intermediate Crude, and between $ 66.00 and $ 73.50 for the International Reference, Brent Crude.  The WTI crude prices traded lower Friday, which fluctuates in the $ 59-a-barrel series. Brent crude prices also went down but maintained what Croft threw as a reliable floor with $ 66 a barrel support.