Overview: Sentiment Turns Bearish But Prices Remain Strong

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Market rhetoric has shifted from how high oil prices can go to how bad the economy can get. Oil sentiment has turned bearish as a result. But this market is by no means weak. The Brent price is reflecting supply and demand fundamentals — with a dose of political premium. So far in 2022 spot Brent has averaged just over $100/bbl — the highest since $98 in 2014. During 2015-21 Brent averaged $57. Both the crude and product markets are tight now and risk running short at the slightest of outages. Brent seems to have found a lofty floor at $90 for now. Products are softening, but diesel’s sky-high refinery margin up to $50/bbl signals how tight that market still is.

Oil Prices, Oil Products, Crude Oil, Oil Forecasts, Oil Demand, Oil Supply, Refining, Oil Inventories
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