Oil market’s cross currents
The oil market faces unusual uncertainty. There are fears that the supply of Russian oil will decline following the price cap imposed by the G7 and the EU embargo. However, oil demand is limited by the global slowdown and the persistence of anti-covid restrictions in China, even if the situation could change rapidly. In this Macro Flash Note, GianLuigi Mandruzzato looks at the cross currents of the oil market and concludes that in the short-term prices will remain volatile with mainly downside risks.