11
Oct
As oil market rebalances, crude prices could reach $60
US production stabilises. Reduction in global supply. Inventories contracting. Saudi Arabia further reduces exports. Chinese imports on the rise.
Key points
- Positive performance for commodities due to upswing of oil prices
- Brent-WTI spread at record high
- WTI likely to outperform in the short term
- US production stabilises
- Global supply finally declines thanks to OPEC
- Saudi Arabia doubles down and lowers its exports below agreed-upon quotas
- Inventories finally drop significantly
- Global demand for crude will grow another +2% in 2017 and 2018
- Substantial draw on OECD stocks
- Focus on the Chinese problem
- Chinese imports will continue to rise crude prices to exceed $60/barrel
