Bloomberg Market Specialist Zef Lokhandwalla contributed to this article.
Oil markets have taken traders on a wild ride. Brent crude has more than doubled since its April low and has remained above $40 a barrel since mid-June. The question now for traders is: What’s the next move for oil?
The supply-and-demand forecast does not look great. The OPEC+ group of oil producers, led by Saudi Arabia and Russia, plan to add almost 2 million barrels to daily production levels starting in August. Meanwhile, data shows that China has eased off its oil buying while international air travel has stalled and the U.S. summer driving season is off to a sputtering start because of the pandemic.
“All of these figures paint a picture of crude being squeezed between rising supply and a stagnating demand recovery,” writes Julian Lee, an oil strategist for Bloomberg First Word. “That’s going to make the oil bulls uncomfortable, since the next major move in prices looks more likely to be down than up.”
— Read on www.bloomberg.com/professional/blog/finding-the-trend-in-volatile-oil-markets/