Crude oil’s price trajectory looks subdued, with experts forecasting stability below $70 per barrel due to entrenched supply-demand disparities. MK Wealth Management Limited’s report highlights short-term gains but a firm long-term cap at $68-70.
Weak global expansion has fostered consumer caution across key markets, stifling rallies. Despite OPEC+ curbs, Brent has plateaued at $60-65 for over a year as supply surges eclipse demand.
Forecasts show demand trailing output growth, compounded by energy firms slashing capex amid cheap oil. Liquidity preservation trumps expansion. Supplies from Venezuela and Iran have normalized, targeting hungry Asian refiners, especially in China.
Political shifts and geopolitical flux add uncertainty to supply continuity. “Short-term boosts from such events are likely limited by core weaknesses,” says MK’s Dr. Joseph Thomas.
He recommends discipline in capital allocation and ops streamlining. The EIA’s outlook aligns, with stocks swelling to 2026 and 2026 Brent at $55/barrel average—clear signs of surplus.
Oil importers gain most, with lower costs aiding growth. The analysis calls for strategic positioning in a prolonged low-price regime, spotlighting resilient assets.