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The price of WTI oil just topped US$60 per barrel and hit a new 12-month high. Contrarian investors with an eye for value wonder if Suncor (TSX:SU) (NYSE:SU) might be a cheap stock to buy now. Oil price tops 2021 expectations Oil analysts expected WTI oil to average US$50 per barrel in 2021. That could turn out to be the case by the end of the year, but the action in the first six weeks suggests the estimates might be a bit low. The WTI oil rebound from US$36 in October caught many analysts and investors by surprise. Revised estimates based on the strength of the rally suggest oil could top US$65 in the coming months. A surge in optimism occurred on the arrival of positive vaccine trial results. Vaccine roll-outs are now underway, and the market anticipates a strong rebound in fuel demand later this year. At the same time, OPEC+ appears committed to maintain agreed supply cuts. Saudi Arabia provided extra optimism when it announced an additional unilateral reduction of one million barrels per day for February and March. Once global workers start heading back to the office, gasoline demand should rebound. In fact, the IEA predicts […]
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