They maintain a structurally bearish view of crude oil prices despite potential short-term upward pressure.
While acknowledging geopolitical risks and potential for a hot summer boosting demand, Macquarie identifies several negative drivers. They express concern about OPEC+ compliance with production quotas, particularly in the context of US election year dynamics. Additionally, they foresee continued growth in non-OPEC oil production, including from the United States, potentially dampening prices.
Overall, Macquarie's analysis suggests a cautious approach to the possibility of a summer oil rally. They believe structural factors could lead to a price correction despite potential short-term upward pressure.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.