Oil market bound to recover in H2 2017 - Wood Mackenzie

In an interview with Russia’s TASS agency published late-Thursday, Ann-Louise Hittle, head of macro oils at Wood Mackenzie, noted that the oil market is set to rebound in H2 2017, irrespective of any OPEC output cut deal reached, Oilprice.com reports.

Key Quotes:

“It (OPEC deal) would accelerate the rebalancing of supply and demand during late 2016 and 2017” 

“That would support prices above our current expectation for an annual average in 2017 of US$55 per barrel for Brent likely towards US$60 per barrel annual average”

Prices expected to stabilize in the current quarter due to the “gradual rebalancing of supply and demand currently underway” 

An OPEC deal “unworkable” at this point due to the exemptions some countries demand

“A major uncertainty around the projected rebalancing of supply and demand during 2016 centers on OPEC and the actions of individual member nations”