Related Articles
Forward article link
Share PDF with colleagues

Oil markets are dangerously rebalancing as prices fall

Cheap oil will be a boon for consumers, but carries long-term risks too

The bonanza years for oil producers are over. The fall in oil prices since the summer shows no sign yet of stopping. Industry veterans talk darkly of a return to the barren years of 1990s or the glut of the 1980s. Pessimism is spreading across the sector. As Petroleum Economist went to press, the front-month Brent contract was selling for around $65 a barrel and WTI for $62/b. Wall Street price forecasts for 2015 are being rewritten daily. The market has further to fall. Prices may not drop as dramatically, or land as low, as they did in the second half of 2008. But there are few indications that once Brent has bottomed, probably sometime next spring, perhaps in the $50s, it will enjoy the

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