UBS argues that the oil market is undersupplied despite weak Chinese oil demand, with demand elsewhere making up for it. They also add that supply growth did disappoint in some non-OPEC+ states, contributing to the situation.
As such, they are retaining a positive outlook on the oil market. And that they expect oil prices to recover from current levels over the coming months. But during the near-term, they note that prices are likely to stay volatile.
UBS says that they are anticipating Brent crude to rise back above $80 in the months ahead while recommending investors to sell downside price risks in crude oil.