Industry officials were in alignment during the Energy Intelligence Forum in London this week. Oil markets are softening amid seasonal oversupply and prices will likely fall further in the coming weeks and months, but the seeds of a new bull market have already been sown and balances will tighten from the second half of next year onwards.
It could be argued that representatives from major IOCs and trading firms are ‘talking their book,’ in putting forward such a position, but it is a position supported by market fundamentals. Oil prices have slid further this week, but Brent remains above $60/B and in a mild backwardation, with front month prices above those further down the futures curve. (CONTINUED - 945 WORDS)
