Oil Market Shrugs Off OPEC+ Output Increase Amid Strong Demand

Final week, I coated photo voltaic vitality.

I nonetheless say that each one vitality arms shall be wanted on deck to help the calls for of AI, to not point out the ability grid within the US and globally.

BlackRock (NYSE:) put out their predictions for the second half of 2025.

2 predictions stood out to me

Utilities rising
Vitality calls for for AI rising

Whereas I don’t imagine it takes a genius to determine that out, I do, nonetheless, like when I’m aligned with an organization like BlackRock.

Immediately, we return to speaking about .

We realized that OPEC+ determined to boost its output goal by 548,000 barrels a day.

But, as soon as once more, the oil market shrugged off the bearish information.

As I all the time say, “Worth dictates the narrative.” What’s the narrative with oil slightly below $68 (the resistance to clear)?

Goldman Sachs put out a prediction that oil will drop to $60. Nonetheless, we already know that shale producers will face tighter margins with decrease costs.

We additionally know that offer and demand guidelines in commodities buying and selling.

Proper now, the market is saying that regardless of rising provide, the demand nonetheless outweighs it.

Will this final?

USO Daily Chart

Ought to oil maintain over $68, not solely does that clear latest resistance, nevertheless it additionally reveals that the bullish momentum on actual movement signifies that the worth may work itself larger.

On the chart of , the January calendar vary (quickly to reset in July), clears and it’s attainable that we see $85 once more.

The final time oil arrange, it was earlier than the Israel and Iran disaster.

This time there may be information that Houthi assaults on industrial delivery resume, stoking recent geopolitical danger.

Due to this fact, do not forget that analysts crunch the numbers and don’t account for the worth charts.