Will Oil Price Rebound Delay Market Balance?

Brent crude futures were trading above $42/B as MEES went to press, their highest level in over three months. But opinion is divided as to whether a sustained recovery is underway or another dip is likely. Paradoxically this latest mini-recovery may delay a sustained market rebalancing.

SUSTAINED REVIVAL OR DEAD CAT BOUNCE?

Predicting prices is a mug’s game, and trying to disentangle the various factors that cause prices to move on a daily, or even weekly, basis is only somewhat more sensible. The only thing that can be said for sure is that prices rise because there are more buyers than sellers, and vice versa. (CONTINUED - 1777 WORDS)

DATA INSIDE THIS ARTICLE

table IEA Supply & Demand Forecasts,March 2016 (Mn B/D)
table OPEC Supply & Demand Forecasts, March 2016 (Mn B/D)
chart US Onshore Active Drilling Rigs