Full Title: A Balancing Act: A Look at Oil Market Fundamentals Over the Next Five Years
Publication Date: 07/2016
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Since mid-2014, the crude oil market cycle has turned downward, resulting in ever lower prices, leading to deep capital expenditure (CAPEX) reductions, and creating turmoil across the oil and gas industry. Recently, market prices brie y slipped below $30 per barrel (/bbl). Some analysts are predicting even lower prices while others are arguing for a modest recovery—at least in the near term. The current downturn has been brought on by a variety of factors including, but not limited to, the US tight oil revolution, the Organization of Petroleum Exporting Countries’ (OPEC) new strategy led by Saudi Arabia to protect market share rather than balance the market, the lifting of sanctions on Iran, growing inventory levels of crude oil and re ned products worldwide, and expectations of slower world oil demand growth due to a worldwide economic downturn.