winter is comingSPR release will cease end of Oct.
OPEC+ will likely cut 500,000 bpd for Nov.
China will reopen after Xi re-elected
Demand is going to still high as all the "low hanging fruits" to reduce demand have been picked
Russian output will drop significantly in Dec with embargo
It's hard to see how demand will further drop with all of the above.
On the other hand, it's hard to see how supply will increase. From where?
Oil is never going below $80 again with the SPR at the current low level. 6 months of release is going to take 6 years to refill.
The central banks have already blown their load...just look at the USD and obviously Powell is at the end of the hike cycle. Prices have indeed come down. We are already in a recession and oil demand remains strong. oil and gas is a necessity, even in a recession.
Most o&g companies are back at MA200 support and likely a bottom IMHO
Comments?