27.10.2015 - GAM's Cominotto: Oil price will rise in 2016
French oil and gas company Total recently reduced its 2017 production forecast by more than 7 per cent as a result of spending cuts and project delays. This followed a cut of the same magnitude earlier in the year. Total is not an isolated case and other oil producers will probably have to cut their production volume targets by even larger amounts. By doing so, they are sowing the seeds of the next energy bull market. The current oil market crisis is clearly supply driven. The emergence of shale oil technology in North America, together with a long period of oil prices above $100 per barrel have led to a massive overspending cycle. OPEC’s decision at the end of 2014 not to reduce production but instead to increase it has brought us to where we are now...............................................Full Article: Source
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