As we continue to warn clients; the oil price will be pressured to the downside even though short-term volatility might cause spikes upwards on tensions in the Middle East. This has been a long term call we have been consistently right about.
We believe that only a full-scale large Middle Eastern conflict could change this view. The global economic outlook will continue to be the largest downward pressure for the time being.
Our view has proven correct since we began warning clients about it in 2023. Oil dropped again today as oversupply concerns overshadowed the possibility of an Israeli retaliatory strike on Iran. West Texas Intermediate fell near to $70 a barrel, after earlier adding as much as 2.2%. Global benchmark Brent traded near $74. Timespreads are pointing to an amply supplied market with the gap between the two nearest contracts for WTI narrowing to 35 cents a barrel. That’s down from $1.79 in August.
“In the absence of new geopolitical developmen ...
Sign up to read the entire article. It's Free and Simple to sign up!
We are offering a
FREE 30 day trial which includes full access to the following services here at investorAi.
You only need an email address to sign up! You will NOT be billed at the end of your trial unless you wish to begin a subscription.