The price of Brent crude has fallen below the level prior to Hamas’s attack on Israel last month. That followed indications that US energy demand is weakening. But overall, we believe global consumption will remain strong, and the risk of supply disruptions has not gone away. With major producers keeping supplies tight, we expect oil prices to rebound.

Global consumption of crude remains well supported, despite the weaker official forecast from the US.

UBS Mark Haefele

Key oil producers have remained disciplined on production, keeping supply tight.

The risk of a disruption to oil production arising from the Israel-Hamas war has not gone away.

“We expect oil to rise after the recent period of weakness. We continue to recommend risk-taking investors add long exposure via longer-dated Brent contracts, which are trading at a discount to spot prices, or to sell Brent’s downside price risks.”– Mark Haefele Chief Investment Officer, UBS Global Wealth Management
Source: UBS