Oil Prices in 2023: Uncertainty, Chaos, and Bullish Desires

Oil prices have swung from $69 to $81 in a matter of weeks reflecting jarring trades and the sentiment of the global economy, financial health and liquidity, the US interest rate path, and OPEC Plus action. Now oil sits at $79 as a stronger dollar and ever altering views of Fed moves weigh on prices. How to characterize 2023? Uncertainty and chaos glossed over by bullish desire. Lots of stock market bulls are out there for sure, but oil has reflected the outlook for the economy. The price swings are being exacerbated by thinner contracted volumes, but the trades, to a degree, are reflecting the outlook for global economic health (not necessarily supply and demand fundamentals). If the economy was thriving and China was ripping, then why did OPEC do this surprise cut? They did it to get ahead of economic decline and stall off short covering. OPEC has never been great at dealing with demand or understanding demand deeply. Geopolitical volatility, OPEC cuts, largely driven by