Hard to Short Oil Due to 'Looming Risk,' Macquarie Says

In a recent interview with Bloomberg Television, Vikas Dwivedi, the energy strategist at Macquarie, discussed the outlook for oil prices and the potential for supply disruptions despite the easing of tensions in the Middle East. Dwivedi highlighted what he referred to as a "looming risk" in the oil market, suggesting that it is difficult to short oil at the moment. He emphasized that while the geopolitical situation in the Middle East has improved, there is still a risk of supply disruptions that could impact the global oil market. The strategist provided a cautious outlook on oil prices, noting that the market remains vulnerable to unexpected events or developments that could affect the supply-demand balance. He advised investors to be mindful of this potential risk when making investment decisions in the oil sector. Overall, Dwivedi's comments suggest that the oil market remains a complex and dynamic environment, where the risk of supply disruptions remains a significant factor to consider, even as the broader geopolitical landscape appears to be stabilizing.