Oil: ‘Scope for price upside limited this year and next’ - Barclays

In its oil market outlook report, analysts at Barclays predict limited scope for upside in oil prices, despite solid global growth outlook.

Key Points:

"Scope for price upside limited this year and next"

"Inventory drawdown to continue based on our balances, but the market will become increasingly focused on 2018".

"OECD inventory data show physical markets gradually rebalancing"

Well-synchronized global economic recovery across all regions

Solid outlook for global growth

Global growth being driven by developed economies and EM is catching up

Credit impulse signaling slowdown that will likely impact 'old economy', this is already evident by the recent plunge in base metals prices

And as electricity output flatlines, commodity appetite to decline as well