Brent is currently trading at multi-year highs amid low inventories, robust demand and supply concerns. This follows a sharp recovery in demand last year, which saw a steep decline in inventory through H22021. Demand looks set for another year of above-trend growth, albeit below last year’s high. We expect output growth to accelerate this year – in contrast to 2021 when supply was slower to recover. This will gradually move the oil market into surplus and reduce prices from their current lofty levels by year-end.
What you will learn: