TD Securities: Tight Summer Balances Support Higher Oil Prices

TD Securities strategists Ryan McKay and Bart Melek highlight a sharp rebound in crude oil and petroleum product flows from the Middle East, but view this increase as temporary as trapped Gulf barrels are released. The analysts point to tight summer balances as a supportive factor for higher oil prices.

While the recent surge in flows may weigh on sentiment in the near term, the underlying supply constraints and seasonal demand are expected to keep the oil market in a deficit, pushing prices upward.