The Bearish Case For Oil Markets

In my commentary for Oilprice.com in April, when OPEC+ surprised the markets with production cuts, I maintained that many were misinterpreting the development, as it will not result in higher oil prices due to falling demand—a tacit confession by OPEC+ and its de facto leader, Saudi Arabia. Moreover, the recent announcement of OPEC+ to cut 1 million barrels a day in July also failed to push oil prices higher, indicating underlying weakness in the global economy. Today, with Saudi Arabia having pledged to extend its latest cut into July, there…