The Future of Oil Prices: Sustainability of the Current Rally

The recent rally in oil prices, driven by OPEC+ production cuts and optimism about the global economy, may not be sustainable. Despite the surge, there are clear indications of a global economic slowdown, including declining PMI numbers and reduced business output in the US, Eurozone, and China. These factors suggest a decline in oil demand rather than a supply shortage. The author projects a ceiling of around $90 for oil prices, with resistance likely around $85. They anticipate bearish sentiment prevailing and oil prices plummeting to the lower $70s or mid $60s, potentially reaching the lower $60s by the end of the year.