Earlier in the week an analyst at JP Morgan said that:
- "investors should probably not worry too much about the recent spike in oil."
Adding that pressure on the demand and supply side is easing:
- long-term investment into energy transition will dampen demand
- the US increasing domestic oil supply is continuing to ramp higher
Which all sounds a bit overly optimistic to me, especially in the near term.
The latest update from the bank on the higher price blames “clearly a supply shock" (ie the OPEC/Russia output cuts extensions)
- Combined, the OPEC+ alliance is holding back more than 4 mbd from the market, which is the highest level of cuts outside of recessions over the last two decades.