Part 8/10:
This dynamic suggests that market participants should focus less on long-term forecasts and more on short-term supply-demand signals to navigate the current transitional phase effectively.
Geopolitical and Other Factors Influencing Oil Prices
While fundamental supply and demand are paramount, Johnston notes several geopolitical and strategic factors impacting prices in the short term. China's aggressive reserve build-up acts as a support mechanism for prices, whereas ongoing geopolitical risks—such as potential conflicts or sanctions in the Middle East—keep traders cautious.
These elements create a market environment where sentiment and risk perception often overshadow pure fundamentals, leading to oscillations in price that can defy traditional supply-demand logic.