The Polarizing Factors Affecting Oil Prices

Energy experts have become increasingly polarized in their predictions for oil demand growth in 2023, with some agencies more bullish than others. Despite this, speculative traders have been increasingly bearish, leading to multi-year lows in oil prices. However, analysts believe that the excessive bearishness is overdone relative to underlying news flow and fundamental data, with global oil consumption on track to rise and inventories gradually tightening. Natural gas prices are also expected to increase in the latter half of the year as Europe goes on another buying spree.