Analysis: Conflict Resolution or Summer Crude Oil Prices Under Pressure

Dennis Kissler of BOK Financial stated that if agreements in the Middle East can be maintained and oil supply returns to normal, crude oil prices may face downward pressure this summer. This is because the damaged oil demand may take longer to recover. He also added: “The United States has not been affected by reduced demand to the same extent, as it has not suffered as much impact as parts of Europe and Asia.” With anticipated additional crude oil supply entering the market and global demand remaining relatively weak, “a significant drop in oil prices is likely to occur in the summer.” “The current market may have already priced in this expectation.”