Analysts at TD Securities (TDS) suggest that conditions are aligning for a tactical rebound in oil prices, citing recent market dynamics that could support a short-term upward move. Following weeks of price softness amid economic concerns, the current oil market appears primed for a potential recovery, as tightening supply factors and improved demand signals build momentum.
Key factors underpinning this forecast include declining US stockpiles and signs of resilience in global demand despite broader economic uncertainties. Additionally, OPEC+ production cuts are expected to continue supporting prices by reducing supply, while ongoing geopolitical tensions may further bolster oil’s appeal as a defensive asset.
TDS warns, however, that while the setup for a rebound is strengthening, price gains may be limited by macroeconomic headwinds, particularly if global growth slows or demand falters. For now, oil appears poised for a near-term recovery, with market participants watching closely for sustained buying signals that could extend the rally beyond tactical levels.
