Oil supply cutback ‘not yet over,’ says Oxford Economics

SINGAPORE (July 20): A recent bounce in oil prices might have eased pressure for cutbacks in oil supply, but the adjustment process may not yet be over given much lower investment and depressed margins.

“Overall, the supply-side for oil has reacted strongly to the slump in prices in 2014 and 2015,” says Oxford Economics’ Dan Smith in a research report.

“Growth is expected to slow, but should remain high compared with recent history. Emerging markets will remain a key driver of this, with lacklustre growth from the OECD countries,” he adds.

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