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3 Mar 2015
Crude oil recovery might have to wait until H2 2015 – BAML
FXStreet (Edinburgh) - According to analysts at BAML, a small recovery in crude oil prices could start to develop in the second half of the current year.
Key Quotes
“Could we already be past the worst in the oil market? The US rig count has come crashing down, producer earnings reports are peppered with sharp capex cuts and some green shoots are appearing on the demand side. Still, we continue to believe that neither supply nor demand will respond materially near-term”.
“Global inventories have already been rising at a dramatic pace. Total crude stocks hit an all-time record high this week of 426 million bbl in the United States. Across the OECD, crude and product inventories continued to build counter-seasonally by 23 million bbl in January.
“We expect the Brent structure to deteriorate faster than the WTI structure, at least initially as Gulf Coast stocks will build faster than Cushing. In any event, supercontango in both WTI and Brent is unlikely to last for long as the global
Key Quotes
“Could we already be past the worst in the oil market? The US rig count has come crashing down, producer earnings reports are peppered with sharp capex cuts and some green shoots are appearing on the demand side. Still, we continue to believe that neither supply nor demand will respond materially near-term”.
“Global inventories have already been rising at a dramatic pace. Total crude stocks hit an all-time record high this week of 426 million bbl in the United States. Across the OECD, crude and product inventories continued to build counter-seasonally by 23 million bbl in January.
“We expect the Brent structure to deteriorate faster than the WTI structure, at least initially as Gulf Coast stocks will build faster than Cushing. In any event, supercontango in both WTI and Brent is unlikely to last for long as the global