Geopolitical Tensions and Inventory Drawdowns Drive Oil Price Gains Amid Debate Over Future Supply and Demand
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Oil prices have gained some upward momentum in the last week, driven by geopolitical tensions and inventory drawdowns.
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Analysts continue to debate just how serious the geopolitical risks are and whether spare capacity and new production will be able to counter supply issues.
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Seasonal shifts in demand, coupled with anticipated interest rate cuts, look set to push oil prices higher in the near future.
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The sheer number, scale, and complexity of the geopolitical risks are likely to cause speculative shorts to become more concerned about headline risk.
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The upcoming interest rate cuts by the U.S. Federal Reserve are also likely to be bullish for oil prices.