- Global oil demand will continue to be the most important variable this year.
- Russia invading Ukraine will likely push ex-OPEC production estimates lower.
- US oil production has been revised up from 12.2/12.3 exit to 12.4/12.5 million b/d.
- Inverse Dollar versus WTI has dramatically diverged, putting additional pressure on global growth, something we need to watch closely.
- Global oil inventories are low, supplies are in check, and geopolitical risks are high. While the oil bulls have the tailwind behind their backs, we need to stay vigilant and watch for signs of faltering demand.
For further details see:
What Are The Bear Forces Right Now For The Oil Market?