UBS is expecting Brent crude oil to recover into $85 – 90 range

Seeking Alpha (gated) with the info from a note from UBS on oil, expects Brent to recover into an $85-90/ bbl range over the coming months.

The note is a good summary of the mix of factors at play.

On demand and the recent slide in price:

• recession fears in the US, ongoing ceasefire hopes in Gaza have
  lowered crude’s risk premium

• weak Chinese crude imports and refinery activity in July sparked
  fears of poor Chinese oil demand

On supply:

• US crude production growth is slowing down
• declining US drilling activity doesn’t suggest an acceleration in supply growth in
  the near term
• OPEC+
  is likely to stick to its cautious approach when adding back supply

Oil update:

This article was written by Eamonn Sheridan at www.forexlive.com.