Platts Market Insight: Supply-side jitters to keep oil prices at lofty levels

FILE PHOTO: Service members of the Ukrainian Armed Forces drive a tank during military exercises in Kharkiv region, Ukraine February 10, 2022. REUTERS/Vyacheslav Madiyevskyy

IT has been an impressive bull run for the oil market with prices flirting with US$100/barrel and this bullish momentum is expected to continue given supply-side risks emanating from geopolitical tensions, falling stock levels, low OPEC+ supply and shrinking spare capacity.

“Oil prices at present are driven more by concerns over future supply than current supply-demand fundamentals,” Kang Wu, head of global demand and Asia analytics at Platts Analytics, said.