- Analytics
- News and Tools
- Market News
- Oil: Supercycle may not be off, but outlook constrained by ongoing additions to global spare capacity – TDS
Oil: Supercycle may not be off, but outlook constrained by ongoing additions to global spare capacity – TDS
Is the Oil supercycle still on? Economists at TD Securities analyze crude prices outlook.
Oil markets to remain range-bound at elevated prices for some time
Recent energy supply trends are still corroborating our view that the West is losing control over commodity supply, but developments to global spare capacity have likely flattened the right tail for energy markets over the coming year. Initially, this is likely to cap the upside to long-dated Brent prices but also decreases the risks of a sustained runaway rally in spot crude prices above $100/bbl over the medium-term.
The supercycle may not be off, but the outlook is constrained by ongoing additions to global spare capacity, such that substantial price gains are likely to unleash additional supply. However, Gulf nations have managed to increase their control on global spare capacity, suggesting that the group of producers can continue to engineer a tighter market without fear of significantly losing market share to competitors.
Instead of offering structural tailwinds to prices from an evaporating pool of spare capacity, oil markets are more likely to remain range-bound at elevated prices for some time.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
