Related Articles
Forward article link
Share PDF with colleagues

Even lower prices await the oil industry

The market is at last adjusting to the fundamentals of weak demand growth and burgeoning supply

Is the 40% drop in oil prices since June a correction or a crash? Anyone in the oil industry hoping the slump in the second half of 2014 will be reversed soon should probably think again. Even lower prices await. A return to $80-a-barrel oil, let alone $100, looks a long way off. Rising supply and weak demand growth made the recent decline inevitable. The supply gains continue to be startling. US output in mid-November was 1 million barrels a day (b/d) higher than at the same point in 2013. Thanks to the Eagle Ford and Permian, Texas on its own added 660,000 b/d to supply by the end of September. In a global context, that means that in just three quarters Texas by itself accounted almost ent

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