Singapore Stock Market News

Global crude - Low for long?

StockFanatic
Publish date: Tue, 27 Jan 2015, 04:39 PM
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Crude prices have fallen by 60% since June

• A V-shaped recovery isn't as far-fetched as it may sound

• In 2014, Asian demand aborbed 60% of the surge in US supply. In 2015, it will 'absorb' 135% of it. The demand-supply gap will have reversed

• By 2017, according to the US EIA, US shale supply will have stopped growing. By 2020, it (and total) supply will be falling again

Global petroleum demand growth will accelerate over the next 10 years, not decelerate, thanks to demand from Asia

• If markets expect prices to return to normal in a year's time, they will put them there today. A return to $100 oil would imply a 12-month return of 110%. Equities don't offer that
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