Related Articles
Forward article link
Share PDF with colleagues

More price drops predicted as the market is yet to recover

Oil prices could take some time to bounce back - and the rout is not over yet

The bottom is nearing, but the pain is really just beginning. The plunge in oil prices, which in mid-January were trading beneath $50 a barrel (/b), or about 60% lower than their summer 2014 peak, has shaken the industry and is already devastating upstream investment plans. Steep price drops are still plausible, especially in the first half of this year, because the market is oversupplied -- and Opec, true to its word, is not blinking. The group will not change its strategy, Suhail bin Mohammed al-Mazroui, the United Arab Emirates’ oil minister, said in mid-January. Opec is determined to deal with the “oversupply coming from shale oil”.The depth of this commitment was plain, too, in Ali Naim

Also in this section
The price is right
5 April 2018
With the help of thirsty consumers and collapsing Venezuelan output, the market seems at last to have found its range
Opec and IEA bristle at Trump's trade posturing
16 March 2018
The IEA and Opec say Trump’s trade plans are a threat to global growth
Five key takeaways from the big three oil market reports
15 March 2018
Demand and supply data still diverge, Venezuela’s increasingly critical to balances, and some macro alarm bells are starting to ring