Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, expressed optimism about the oil market during a recent interview with BNN Bloomberg. Despite the potential reopening of the Strait of Hormuz, Nuttall remains bullish on oil due to record-low inventories.
Record-Low Inventories Support Bullish Outlook
Nuttall highlighted that global oil inventories are at historically low levels, which provides strong support for prices. He noted that even with the possibility of increased supply from the Strait of Hormuz, the market remains tight.
Market Dynamics and Future Projections
The senior portfolio manager emphasized that demand continues to outpace supply, keeping pressure on inventories. He expects this trend to persist, driving oil prices higher in the near term.
Nuttall also commented on geopolitical factors, including the reopening of the Strait of Hormuz, which could add supply but not enough to significantly alter the current deficit. He advised investors to remain focused on fundamental supply-demand balances.
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