After the big short a painful recovery for oil prices and IOCs
Issue 1009
- 04 Feb 2016
| 5 minute read
Whisper it softly, but oil prices are expected to rise following crude’s 70%-plus slump in the past year, as global supply contracts, speculative short positions unwind and demand continues to grow. In a poll by Thomson Reuters on 4 January – when Brent crude was trading at $37.22/bbl – analysts forecast an average $52.50/bbl for the marker crude in 2016. There are signs that market dynamics will drive another ‘correction’ that will stabilise markets, despite global recessionary tendencies. The International Energy Agency (IEA)’s recently published World Energy Outlook 2015 (WEO) showed demand for oil and gas continuing to rise.
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