NEWS that the oil market is starting to rebalance has not stirred much excitement and price expectations remain modest. Supporting an oil price recovery scenario will be consumption growth keeping pace, and the commitment to extend production cuts until the first quarter of next year, said Yong. As a result of production declines and stronger demand, global oil stocks are beginning to rebalance, said Reuters, quoting the International Energy Agency (IEA). “The progress made in the rebalancing of the oil market, if sustainable and supported by improving global demand, should help support the price of oil. “Ultimately, it is the fundamental supply and demand equation that will dictate the direction of oil price over the medium term.

Source: The Star September 18, 2017 00:00 UTC