oil prices are likely to gain in the near future and decrease later on
Insights
12-2027
CONCEPT
This dashboard isolates the fundamental supply-and-demand dynamics of the global crude market using official US EIA data. By tracking structural imbalances between production and consumption, Cartesio helps investors anticipate upcoming market tightness and inventory shifts that directly dictate oil price momentum.
CURRENT READINGS
Looking at the recent past, we moved from oversupply in the oil market to demand exceeding supply, as the recent squeeze in oil inventories can also confirm. Focusing on forward estimates, demand is going to exceed supply in the near future with a drawdown in inventories, then oversupply will follow and inventories will eventually re-adjust.
MARKET IMPLICATIONS
Given the above expectations on demand, supply and resulting inventories, and ignoring unpredictable geopolitical developments, fundamentals show that oil prices are likely to gain in the near future and decrease later on
In general terms, expected inventory drawdowns typically push oil prices higher, while expected inventory build-ups suppress prices.