Standard Chartered analyst Paul Horsnell said in a report that the oil market is worried that the recent supply tension in the market is receding and that there may be oversupply in 2022.
The most tense period is over, and the fundamentals of 2022 are weak.
If supply tensions begin to ease now, then OPEC+ 's decision to stabilize production may be the wrong choice.
Supply and demand conditions suggest that demand may not be tight enough to cause spare capacity to fall to dangerously low levels or push prices above $100 a barrel.
Us supply growth will exceed traders' expectations in 2022.
We believe that we may enter a situation where economic decision-making and consumer travel are still affected by the pandemic and will remain so for quite a long time.
We don't think this possibility is fully reflected in oil prices.