UBS on Brent oil – strong fundamentals to support a $90–100/bbl range in coming months

<p>A UBS analyst note on the oil price says their base case is that the price will not rise above $100 a barrel on a sustained basis over the next year. </p><p>Such a rise would draw a step higher in US production as well as weighing on demand. </p><p>UBS on supply factors:</p><ul><li>Saudi Arabia and Russia extending their extra supply cuts until the end of the year</li><li>US oil output growth likely to slow as a result of lower drilling activity in recent months</li><li>

Global visible oil inventories fell sharply in August, at their lowest since July 2022 (citing International Energy Agency info)</li></ul><p>On demand factors:</p><ul><li>Global oil demand is at a record 103 million barrels a day</li><li>reopening of China and solid demand growth in India</li><li>expect the rise in demand to slow back to the long-term growth rate of around 1.2 mbpd in 2024</li><li>demand will continue to rise</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.