Uncertainty reigns in oil markets

Analysts see price drivers both to the upside and to the down

The Brent crude price was back below $70/bl in late May, having peaked above $74/bl in April, but still well above the $60-65/bl range observed during most of Q1. Some of the oil analysis world's most recognisable names discussed the oil market's short-term outlook at the S&P Global Platts Gepec conference in May. The clearest conclusion was that the market faces unprecedented uncertainty on both the demand and supply sides. The most immediate supply issue is disruptions, which—with Iranian and Venezuelan problems compounded by the Druzhba pipeline outage hitting Russian exports—is at "record levels", according to Chris Midgley, global director of analytics at consultancy Platts Analytic