The Barclays Oil market outlook is detailed, but I've summarised
They headline the report with
"Scope for price upside limited this year and next"
- Saying, "Inventory drawdown to continue based on our balances, but the market will be come increasingly focused on 2018".
and
- "OECD inventory data show physical markets gradually rebalancing"
The bank notes strengthening macroeconomic backdrop:
- Well-synchronized global economic recovery across all regions
- Solid outlook for global growth
- Global growth being driven by developed economies and EM is catching up
But Chinese economic slowdown to pressure commodities
- Credit impulse signaling slowdown that will likely impact 'old economy', this is already evident by the recent plunge in base metals prices
- And as electricity output flatlines, commodity appetite to decline as well
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There is more (it's a long piece), but note - no price outlook in the report.
