Expect crude oil to trade in the sub-$70 zone as supply gluts overpower demand signals, per a new MK Wealth Management report. Short-term upticks aside, prices should settle at $68-70 long-term.
Diminished global momentum keeps spending in check across major economies. OPEC+ cuts fail to lift Brent beyond its year-long $60-65 rut, with supply consistently overwhelming usage.
Demand projections fall short of supply ramps, while cheap crude prompts investment pauses for balance sheet fortification. Venezuelan and Iranian barrels are back online, streaming to China and Asian hubs.
Emerging geopolitical risks threaten continuity but offer only transient lifts. Dr. Joseph Thomas, MK Research Head, cautions: “Fundamentals will rein in any excitement from politics.”
Prioritize capex control and efficiency, he advises. EIA data projects inventory growth to 2026, dragging Brent to $55 average—surplus confirmed.
This bodes well for net importers, curbing import bills and inflation. Savvy investors eye operators excelling in lean times.