Crude Oil Rises

Crude oil (Brent and WTI) is currently valued at more than US$10 above its mid-February low, lifted by optimism that a bottom has now been past. OPEC and Russia tentatively agreed to freeze oil output earlier this month, but have indicated that an actual supply cut is not on the cards. Our survey on quarterly crude oil volumes suggests that global supply will continue to outstrip demand until mid-2017. The recovery in crude oil will be constrained until the build up of inventories is worked off.

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