Oil market not as tight as originally thought, demand is weaker – price forecast lower

News

Snippet from a note from ING on crude oil. From Friday ICYMI.

In brief:

  • Stubborn Russian oil output and weaker than expected demand growth mean the oil market is likely to remain in surplus for the remainder of this year and into early next year, which should limit the upside in oil prices.
  • Although, given that inventories are at historically low levels, we still believe that prices will remain elevated, whilst limited OPEC spare capacity and uncertainty over how Russian flows will evolve once the EU ban comes into full force should also limit downside in the medium term.

Articles You May Like

Learn with ETMarkets: Understanding base metals and how to trade it
Nike CEO Elliott Hill outlines new strategy after retailer blames promotions for declining revenue and profit
Philadelphia Fed non-manufacturing service activity for December -6 vs -5.9 last month
Gold climbs after soft US inflation data; still set for weekly loss
Market Recap: U.S. stock indices rise today, but close with weekly losses

Leave a Reply

Your email address will not be published. Required fields are marked *