Weekly Oil Report: India and Iran Shifting the Market Short-Term Outlook

In recent weeks, oil experienced many contradictory reports. Some expecting the price to rise while some predicted a fall. Here we review the oil outlook for short term, mid-term and long-term visions.

Oil short-term outlook is not much promising. Surprising events, including new waves of Covid-19 pandemic in many countries and Iran-US highly probable nuclear negotiations, are increasing the risk of purchase.

For instance, after the 7% fall of fuel demand in India due to the deadly second wave of coronavirus, Brent price fell by $0.15.

The current economic condition is not supporting oil as well. Last week, FOMC declared that the inflation is not stable yet and they will continue the expansionary policies. As a result, we faced growing stocks but oil did not much follow. The rising risk of supply and demand, in the short-term outlook, frightens the market periodically. Due to the current turbulences, Infinity Galaxy predicts that WTI can touch below $61 and Brent touches below $65 in the first week of May.

The mid-term outlook of oil seems better as big financial institutions like Goldman Sachs are bullish for summer demand. Vaccination acceleration and higher demand for travel in summer will be in favor of oil. OPEC+ and Saudi Arabia decision to raise production can be a valid sign of expected demand in summer.

On the contrary, long-term analysts believe that carbon fuels are doomed to fade around 2050. Although it is disputable, it is possible due to countries plans to hit “net-zero” by 2050. Electric cars and renewables have also stood out recently. Will that be the end of fossil fuels? We cannot take it for granted right now but time will tell us better.

Infinity Galaxy releases oil analysis in the forms of weekly reports. Our support team is also 24/7 available to help you. Contact us here.