Executive Summary Oil market outlook

Rising geopolitical tensions in the Middle East, the start of the summer driving season in the United States and weakness in the US dollar index will support oil prices in the near term. Nevertheless, rising US oil production will remain the predominant bearish factor keeping a lid on price gains.

A recent increase in missile attacks on Saudi Arabian territory by Iran-backed Houthi militants based in Yemen has significantly boosted oil prices. Meanwhile, Russia and Iran are at loggerheads with the US and its allies because...