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OIL: Volatile Oil Prices to Recover Over Coming Months: UBS

OIL

UBS says oil prices are likely to stay volatile in the near term but are expected to recover from current levels, according to Reuters.

  • Brent is expected to recover back up above $80/bbl over the coming months.
  • The outlook remains positive as the market is undersupplied despite weak Chinese oil demand.
  • Oil demand in other countries is strong and supply growth in some non-OPEC+ states has disappointed.
  • The oil market is unduly concerned about additional OPEC+ volumes as participants will likely wait to see how OPEC+ production will evolve, UBS said.

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