How Much Lower Could Oil Prices Fall?

On Friday, April 7th, Brent crude closed at over $85 per barrel. That was a few days after OPEC+ had announced it would reduce its production by an additional 1.16 million barrels daily. Fast forward a month, and Brent is almost $10 cheaper. Despite the promised supply cut, despite a production suspension in Kurdistan, and despite China’s demand growth, prices have fallen. And they may have further to fall. For a while, at least. The big reason for the price drop we witnessed over the past four weeks was economic sentiment, especially economic…