It’s already up about 60% or more on the year, and all indications are that it’s massively overbought and due to correct. Yet, like anything where its implied demand attracts more attention than its actual use, oil prices are expected to continue rising.
This is especially after Monday’s move by OPEC+ to reject any notion of adding more supply than it has committed to a market of which it was in absolute control. Prior to Monday’s meeting of the 23-nation oil producing alliance, there had been speculation it might agree to adding beyond the 400,000 barrels per day of new supply it had committed to through end-April.
But once the video linkup was over among the 13-member Saudi-led Organization of the Petroleum Exporting Countries and their 10 allies steered by Russia, the message was clear: there would be no change.
There was no official statement on the matter either. But a Saudi official told the Wall Street Journal that “the kingdom is comfortable with the current price range and feels it won’t weigh on demand for oil.”