QCLN - Energy Markets Are Better Supplied
2024-01-29 23:00:00 ET
Summary
- Both the oil and gas market are set to be more comfortable than originally anticipated this year.
- Strong non-OPEC+ supply growth has shrunk the size of the oil deficit in 2024.
- For natural gas, European storage is set to finish the season well above average, suggesting limited upside for prices.
By Warren Patterson, Head of Commodities Strategy
Oil to edge higher but gains to be modest
The bullish outlook for the oil market has softened in recent months, given stronger-than-expected supply growth from non-OPEC producers in 2023. This was predominantly driven by the US. However, growth was also seen in Brazil, Guyana, and Norway. Stronger non-OPEC supply has meant that OPEC+ has had to take further action to try to keep the market balanced....
Energy Markets Are Better Supplied