ESAI Energy points out in its ‘June Global Crude Oil Outlook’ that the global oil market has registered a small deficit since March.
Yet, there is no single month when the balance has or will swing strongly into deficit. The subtlety of the emerging deficit does little to encourage bullish market perceptions.
Global oil demand growth will likely exceed 1.5 million bpd in 2017. With this growth and continued OPEC restraint, the market is fine-tuning more than rebalancing.
Global demand clearly exceeds global supply, but not excessively. For oil prices to rise quickly and substantially, there will need to be a big event. Absent that, it will just take more time and continued OPEC restraint to lift crude oil prices.
“As fundamental analysts, we still anticipate higher crude prices later in 2017 and in 2018,” says ESAI Energy principal, Sarah Emerson.
Read the article online at: https://www.worldpipelines.com/business-news/19062017/esai-energy-highlights-recent-crude-oil-market-deficit/