Crude oil fundamentals driving the macro view

Crude oil prices are no longer driven solely by macroeconomic factors, but are now starting to drive the macro view. The market is tight, with low inventory levels and high demand. While there is uncertainty in the bond and currency markets, oil prices have held up well. Oil demand appears to be becoming more inelastic, with higher prices not significantly impacting consumption. There is a concern about the lack of investment in the industry due to societal and governmental pressures. A supply gap is expected in the medium term, as there are not enough projects in the pipeline.