Weak demand to keep a lid on oil prices

Oil prices rose a little in June on a combination of escalating US-Iran tensions, signs of a truce in the US-China trade war and the expectation that OPEC+ would extend its production cuts. However, prices have already eased back. In our view, lower OPEC+ production should act as a floor under prices, but our forecast of weak demand growth suggests that there is little scope for price gains.

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