- Multiple factors have added to the current bullish oil markets: 1) Demand resurgence 2) Inventory depletion 3) Energy crisis 4) Supply concerns 5) Falling spare capacity 6) Geopolitical tensions.
- However, following factors are being ignored: 1) Increased U.S. Shale production 2) Higher prices incentivizing OPEC+ to produce more 3) Rising rates 4) Strong Dollar and others.
- Oil prices will fall from these levels and stabilize in lower to mid $80s. May enter $100 temporarily but will not stay in that range for longer.
For further details see:
Oil Prices Have More Chance To Go Down From Here, Than Up