Citi say that encouraging news on vaccine tests/trials should be supportive for market sentiment, and hold oil trading in the upper end of its range.
- oil prices are expected to "range-bound" in the near term but with the roll-out of vaccine distribution to take time this will weigh during the northern winter months
- OPEC+ to deliver a three-month rollover of the current 7.7m b/d cuts, will help re-balancing of the market
Further ahead, if OPEC+ then go further and holds the current quota for 1H 2021 would draw down inventory to a tight level and prompt an overheating in mkt.
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I'd be wary of projecting any tightening from OPEC + beyond Q1 at this stage.
