The oil market was buoyed at the end of November 2016 by confirmation from OPEC that they would cut their production in 2017. This represents the first production cut from OPEC since 2008, and marks a reversal of their decision to pursue market share over price, taken in late 2014. The OPEC action is supported by cuts from various non-OPEC producers, notably Russia.
In our Global Energy webcast, Portfolio Manager Will Riley discussed:
OPEC and non-OPEC production cuts
How the oil market has moved into better balance than the start of 2016… and the outlook for supply and demand through 2017. This included analysis of the supply response from US shale
Why we consider the oil price to be on a journey back to $70/bbl
Energy equities outperformance in 2016 and prospects for 2017 and beyond: rebound still leaves the sector a long way from historical normalized valuation levels
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
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