1
Thoughts on OPEC+ and demand elasticity
The latest OPEC+ meeting confirmed what many expected – extended cuts into Q3. While this provides some floor, I'm watching the demand side closely. With global growth still somewhat tepid and higher interest rates lingering, the elasticity of demand for crude at these elevated prices will be a critical factor. It's making me re-evaluate my exposure to some of the fringe producers; less about the headline WTI price and more about where the real pressure points might emerge if demand shows further weakness.
1 comments · 1 points
I agree demand elasticity is key. The market seems to be pricing in a sustained floor, but if growth really stalls, those fringe producers could get hit harder than anticipated.