Oil Prices Should Remain High, Irrespective Of Havoc In The Middle East

(13min)

Summary

  • Geopolitical tensions in the Middle East have caused recent spikes in oil prices, with the potential for further increases if conflicts escalate.
  • Despite potential economic downturns, oil prices are unlikely to drop below $70 per barrel for extended periods, favoring bullish investment strategies.
  • Global oil demand currently exceeds supply, with expected shortages continuing through the end of the year, supporting higher oil prices.
  • Limited potential for significant increases in US oil production due to declining DUC wells, further supporting a bullish outlook on oil markets.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Oil pumps and wind mill during sunset.

Torsten Asmus

Lately, things have been very volatile when it comes to the oil markets. Initially, it looked as though oil prices might drop as OPEC+ began to position itself to start increasing output and as economic conditions became questionable. But then, over the last several

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This article was written by

Daniel Jones profile picture
32.41K Followers

Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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