According to Tom Kloza, the oil rally will stay, but not for long

US crude oil still known as West Texas Intermediate (WTI) marks one of its best rallies since the beginning of the year. According to expert Tom Kloza, there is no factor to cause this rally to "derail" in the first half of the year.

Kloza is hopeful for future oil price rises, but warns that in the second half of the year we will see a slowdown in the rally, even a fall in prices. Kloza is known for predicting the collapse in oil prices since 2015.

Its forecast for this year is that the price will be cheaper even against last year's average price. In 2018, Energy Information Administration determined the average WTI price to stay around $ 65.06 per barrel.

According to Kloza, WTI may rise by more than $ 15 to $ 20 a barrel. But he notes that this year is different because oil was heavily sold out in December. Currently, the market is well balanced.

"We are in a situation where a lot of refineries are closed for maintenance but at the same time gas prices are not rising, demand is not rising, which means less demand for oil." - notes Kloza.

Source: CNBC

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