US crude futures are set to post four straight weeks of gains amid concerns surrounding growing scarcity of fuel products.
Oil benchmarks are being kept above $100/bbl as well as their respective 50-day moving averages as market fundamentals point to a persistent supply shortage.
Once China ultimately lifts its lockdowns, with local banks being the latest to help shore up the economy, China’s demand recovery should lift the cap on oil prices.
Supply disruptions are also set to persist as long as the Ukraine conflict still rages on, which in turn is preserving the supportive environment for oil prices. However, the support for oil prices could be eroded by more evidence of a recession, or via a surprise intervention by OPEC+ to hasten its output restoration plans.