Oil prices have faced significant volatility, dropping to levels unseen since late 2021, driven by extreme bearish sentiment and unprecedented short positions. However, potential supply constraints from OPEC+ cuts, geopolitical risks, and unexpected demand boosts from economic stimuli and travel recovery could lead to a price rebound. Despite institutional pessimism, factors like developing world growth and petrochemical demand suggest that long-term oil demand may remain robust, creating a scenario for a swift market reversal.
