Bourse worries" be damned! Oil prices are on the rise again, according to many analysts.

Many analysts believe that oil prices will soon go up again despite the bourse worries of economic slowdown.

Topline

Oil prices fell further in choppy trading on Wednesday, extending recent losses as fears of a recession spread and wreak havoc on markets. Despite worries that an economic downturn could hurt demand, experts remain confident that prices will rebound later this year.

  
   Oil markets are pricing in recession concerns but many analysts remain bullish.  
  Apu Gomes/AFP via Getty Images
The oil markets are pricing in recession concerns, but many analysts remain bullish.

A summary of the most important information

In the following paragraph,

Goldman Sachs analysts think that the recent fall in oil prices was an overreaction, as global supply is still tight. "While the risk of a future recession is growing, our bullish view remains intact because the current oil deficit has not been resolved, and demand destruction through high prices is the only way to solve it as inventories continue to decline."

Jeffrey Halley, senior market analyst at Oanda, says that the recent price action is more indicative of panic and forced liquidation than a structural change in the tight supply-demand situation globally. He also adds that "it doesn't seem like the oil supply situation is about to undergo any dramatic shifts imminently."

Background:   

In spite of the recent falls, oil prices have jumped over 10% this year—peaking at nearly $140 per barrel in early March after Russia's invasion of Ukraine. Prices have been falling since early June, however, with markets hard-hit by rising recession fears in recent weeks. The S&P 500 Energy sector was up over 65% for the year only a month ago, but since then "energy stocks have come crashing back down to earth" amid the drop in oil prices.

Oil prices fell below $100 per barrel for the first time since May as a “strong likelihood of recession” hurt demand (Forbes).

Warren Buffett has increased his holdings in Occidental Petroleum, purchasing the dip after oil prices fell (Forbes).