Oil will keep drawing strength from Middle East geopolitics, OPEC+ strategy for now

Models of oil barrels and a pump jack are displayed in front of a stock graph in this illustration. - Reuters

THERE are growing fears of yet another conflict in the Middle East. OPEC+ is keeping a tight rein on supplies. And growth outlook in improving in some key global economies.

For now, the oil market has enough reasons to believe that these factors combined have the ability to more than offset any supply growth that the market is witnessing in non-OPEC producers, at a time when demand growth outlook in some key oil consuming countries, such as China, is just about moderate.