OPEC+ Shock Revives Oil Bulls Even as Demand Warnings Flash
- Traders point to souring economic view as reason for caution
- Complicated price outlook is a headache for central bankers
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OPEC+’s surprise oil-production cut sent shock waves through financial markets and pushed crude prices up by the most in a year. Now that the dust has started to settle, one question looms large: Will that price rally stick, or fade away?
Banks from Goldman Sachs Group Inc. to RBC Capital Markets LLC raised their oil-price forecasts immediately after the OPEC+ cut. Yet, many traders still believe a souring economic outlook will block the group’s actions from pushing prices higher. Demand indicators are also starting to flash warning signs.