Crude oil prices are falling, says macro analyst TDSDaniel Ghali.
The supply risk premium is fading
“OPEC+ is cornered. The supply risk premium is fading, and further delays in planned production increases will not be enough. Global oil demand growth is weakening, and not necessarily solely due to slowing global growth.”
“There is still a massive risk premium built into oil prices, a legacy of critically low spare capacity during the pandemic-era bull market, suggesting that the combination of weakening demand growth and rising supply threatens to inflict far more damage on prices than anticipated, given balance sheet expectations.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
