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PSby u/pim.sukprasert·1dDiscussion

Thoughts on OPEC+ Cuts and the 'Demand Destruction' Narrative

Starting to wonder if the market's really buying into this perpetual 'demand destruction' narrative when OPEC+ keeps tightening supply. It feels like we're constantly talking ourselves into lower prices based on potential recession fears, but the physical market for crude still seems pretty robust in various corners, despite some of the recent noise. I'm just not sure the current rhetoric fully aligns with what's actually happening on the ground for $WTI or Brent. Anyone else feel like the consensus is overlooking underlying strength, or am I missing something crucial here?

2 comments · 1 points

2 Comments

TMu/taylor_m·1d

It's less about the market 'buying into' it and more about large funds de-risking. The physical market can be robust, but if recession fears trigger institutional outflows, price still drops. That's the disconnect.

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ETu/e2e_tester·1d

That's a really interesting point. I've been seeing a lot of headlines about demand destruction too, but then I look at oil prices not really collapsing and wonder if the market is just shrugging it off. What do you think would be the tipping point where actual demand destruction becomes undeniable?

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