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OIL MARKETS 2011: SUPPLY COMES BACK INTO FOCUS

Oil Markets 2011: Supply comes Back into Focus

Study Released March 02, 2011

Commodity Report - Crude Oil - December 2010 - January 2011

Key oil market assumptions from 2010 are coming under scrutiny in early 2011, as the market tests the $100/barrel level once again. The market breakout from a range of $70-80/barrel WTI in October 2010 was driven by themes that will again dominate 2011. First, markets saw dollar weakness as a reason to buy oil futures as the US dollar sold-off on the back of the Federal Reserve announcing a second round of quantitative easing. On the back of that movement, more optimistic expectations from the IEA on oil demand, built around improving macroeconomic outlooks within the OECD countries, added additional upward pressure. Mostly absent from these market trends has been a focus on supply – as the market refocuses on supply in 2011, a more cautious outlook on prices will likely re-emerge..... Download full report.

December 2010 - January 2011