Do Geopolitical Tensions Benefit Crude Oil? Analysts: They Will Further Exacerbate the Pressure of Crude Oil Oversupply in the Medium Term
Market analysts believe that the U.S. attack on Venezuela, combined with the recent spate of international geopolitical events, will drive increased volatility in the crude oil market. Regarding future market trends, economist Pan Helin stated: “In the short term, this will push up oil prices, but in the long term, it will lower them, as the entry of U.S. oil capital will boost Venezuela’s future oil export capacity.” The petrochemicals team at Guojin Securities believes that current crude oil prices remain caught in a tug-of-war between geopolitical conflicts and supply-demand imbalances, with the primary support coming from geopolitical factors. Any rise in crude oil prices triggered by geopolitical conflicts will be temporary, and in the medium term, it will further exacerbate the pressure of crude oil oversupply. If the conflict in Venezuela ends, Venezuelan production could recover to over 1.1 million barrels per day. Everbright Futures notes that while the pace of global onshore and offshore inventory buildup has slowed recently, absolute inventory levels remain high. The firm maintains its assessment that supply-demand pressures will remain significant in the first quarter of 2026. Due to geopolitical events, energy and chemical products in the domestic market may experience significant volatility upon reopening after the holiday. (21st Finance)
Source:富途快讯 · Source Link
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