In a landscape of oversupply and sluggish demand, crude oil prices are set to remain below $70 per barrel for the foreseeable future. MK Wealth Management’s latest analysis reveals that while short-term fluctuations are possible, the $68-70 range will dominate long-term trends.
Global economic deceleration is the key culprit. Consumers in powerhouse economies are holding back, muting demand growth. OPEC+’s restrictions notwithstanding, Brent crude has been stuck in a narrow $60-65 band for more than 12 months, thanks to supply outpacing consumption.
Production ramps from sanctioned producers Venezuela and Iran are channeling extra barrels into Asia, particularly China. Low prices have also curbed upstream investments, as oil majors safeguard cash flows and strengthen balance sheets.
Geopolitical wildcards could spark temporary spikes, but Dr. Joseph Thomas of MK Wealth warns they won’t alter the big picture: “Support from tensions will be fleeting against weak fundamentals.”
The U.S. EIA bolsters this view, projecting inventory builds through 2026 and Brent averaging $55 next year. Energy firms are advised to hone efficiency and maintain spending restraint.
For markets like India, this means stable import costs and breathing room for fiscal policies. The report signals a buyer’s market ahead, favoring nimble players who adapt to low-for-longer dynamics.