Oil is in the middle of a fit. The commodity just recently entered a bear market and it is has been swinging up and down based on confusion over whether it will be over- or undersupplied in coming years. The market is plunging today as OPEC announced yesterday that it sees a slowdown in oil demand coming as well as oversupply. According to OPEC, “The recent downward revision to the global economic growth forecast and associated uncertainties confirms the emerging pressure on oil demand observed in recent months”.
FINSUM: The oil market seems to be trying to get ahead of a recession. OPEC’s demand forecast has slumped considerably, which in our opinion is one of the major drivers of the bear market.