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In its latest client note, the analysts at the Swiss bank, UBS, highlighted the key reasons behind their positive outlook on oil.

Key quotes

“A combination of factors-a risk-off environment, a stronger US dollar, concerns about stalling oil demand-has pushed Brent prices to a two-month low.”

“We still see oil demand moving higher from here over the coming months. Also, OPEC+ compliance is higher than we thought, and at current prices we don’t expect US crude production to grow.”

“With the oil market staying undersupplied, we reiterate our positive price outlook.”