CNBC Guest: ‘The Market Right Now Is Much More Focused on What’s Happening with Demand and What’s Happening in China’

EXCERPT:

BABIN: "Yeah, so, looking at WTI, I'd say two months, we are probably closer to 105, but Brent at 110. And I think a lot of that just has to do with the fact we have several catalysts coming. As Helima mentioned, Russia likely continues to apply pressure to Europe and pressures European gas supply, which will provide a tailwind to crude oil as many industries try to switch over from gas to crude. We also have the SPR rolling off in November, which has been a huge buffer to crude supplies in the U.S. and that will have a massive impact. And then we have increasing sanctions coming from European nations on crude oil, on insurance. So all three of those things I think really contribute to crude grinding higher. The market right now is much more focused on what's happening with demand and what is happening in China, and I do think those are relevant. However, I think the supply side of the equation over the next couple months will overwhelm that and China's kind of dwindling or slower recovery will fall to the backseat."