Bearish demand outlook offsets geopolitical risks

Bearish demand outlook offsets geopolitical risks

Economic uncertainty and a bearish oil demand outlook continue to offset heightened geopolitical risks and keep a lid on oil prices. S&P Global Platts Analytics, however, believes that prices are far from where fundamentals suggest, weighed down by bearish sentiment around the health of the global economy.

“The crude market seems to have lost its risk premium and we think this may be premature,” it said in a recent report.

Platts Analytics expects bigger upward price moves in the immediate months ahead, estimating a five million barrels per day (b/d) jump in crude demand in November and December as refineries return from outages. Read More

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