Oil Prices Set to Extend Three-Month Losing Streak, Macquarie Analysts Warn
Macquarie analysts are predicting that oil prices will continue to fall through the end of the year due to weak supply and demand fundamentals. Despite geopolitical tensions in the Middle East and potential stimulus from China, the analysts believe that bearish factors will outweigh any potential boosts to oil prices.
The supply-demand imbalance, driven by US production growth and the return of OPEC+ barrels, is putting pressure on oil prices. Despite the risks to global supplies from geopolitical tensions and Chinese stimulus, the analysts see the fundamentals remaining weak.
The recent sell-off in oil has brought prices back to their 50-day moving average, reflecting a bearish sentiment in the market. Macquarie suggests that unless there is a significant shift in supply dynamics or stronger economic data, oil prices are likely to remain under pressure.
Overall, the analysts do not expect recent stimulus efforts to have a significant impact on oil demand growth until the property sector stabilizes and rebounds.
In conclusion, investors should be cautious as oil prices are expected to continue their downward trend. It is important to monitor supply dynamics and economic data for any potential shifts that could impact oil prices in the future.