Revising up our oil price call – fast forwarding the long structural supply story: The MUFG Global Markets Podcast

The sheer dizziness of the oil price strength since the turn of the year has taken even the most bullish investors by surprise. The global oil markets narrative is hastily pivoting from pricing in demand recovery towards supply scarcity, corroborated by the steep backwardation in forward markets, signalling acute market tightness.

In this week’s podcast, Ehsan Khoman, Head of Emerging Markets Research (EMEA), deliberates why the simultaneous blend of depleting inventories, thinning spare capacity and structural underinvestments is leading him to fast forward his long structural supply-side side thesis. Listen in to hear Ehsan’s comprehensive analysis underpinning why MUFG’s oil price forecasts have been revised higher to now point to Brent averaging USD96/b in 2022 and USD112/b in 2023.

 

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