Crude rallies despite OPEC+ supply return – TDS

Crude prices are rallying even as OPEC+ continues to bring crude Oil back to markets, TDS' Senior Commodity Strategist Daniel Ghali notes.

Gulf exports likely to climb post-summer peak

"While this was widely expected and eased fears of an even larger supply increase, we continue to expect that markets will struggle to absorb these barrels, but more notably after the summer months given that Gulf Oil exports are more likely set to rise following peak seasonal demand for the region."

"For the time being, geopolitical escalation has whipsawed CTAs, but we continue to expect that most scenarios for prices will see CTAs grow their net short in crude and products over the coming week. There is only a very narrrow path towards substantially higher Oil prices."