July 27, 2017

This year has been a waiting game so far and sentiment towards crude oil and energy equities is back to early 2016 levels.

https://vimeo.com/227385461/b207aafd80

During the webcast our Global Energy Team discusses:

• Bloated global oil inventories remaining the root cause of the problem and the market wants to see confirmation of rebalancing

• Some reasons for optimism around rebalancing but there are also many moving parts:

  •      Oil demand growth continues at a steady 1.0-1.5m b/day
  •      Cost of inflation in the US onshore will pressure well economics                                                
  •      Lack of investment will bring non-OPEC (ex-US) production declines

• However, a ramp up in US activity will keep a lid on oil prices near term

  •      Growing and outspending is back on the agenda for US E&Ps

• Energy equities are likely to recover from very low sentiment but the market will clearly want solid data before pricing in more hope

Click here to download a PDF of the webcast presentation slides.

 

For Registered Investment Professional Use Only