RBC Sees Oil Slumping Into $50 Range as Supply Growth Tops Demand
An oil tanker is escorted by a tugboat on the Strait of Juan de Fuca between Washington State and British Columbia, Canada.
Photographer: James MacDonald/BloombergGlobal oil supply will expand almost four times faster than demand this half, pressuring prices as stockpiles build, according to RBC Capital Markets LLC, which sees Brent falling to the mid-$50s a barrel.
While some parts of the physical market are tight at present, that support may fade as worldwide crude output expands by 2.3 million barrels a day this half, dwarfing a projected rise in demand of 600,000 barrels, analysts including Brian Leisen said in a July 9 note.