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OIL: Energy Aspects Points to More Bullish Factors for Oil

OIL
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The worst is now behind us for the Chinese economy according to Energy Aspects director Amrita Sen, adding that the latest stimulus measures will help to get the economy off the ground. 

  • The Chinese economic slowdown has been a big contributor to oil price weakness through September.
  • On the supply side, Amrita said half of Libyan supply is offline, US supply is not growing much, and global inventories are low so it is hard to justify prices where they are now.
  • “I don’t think oil prices will be materially higher in the near-term because of so much uncertainty,” Sen said.
  • Sen notes that such strong backwardation would usually see a stronger flat price while the China stimulus would usually have caused a more significant impact also.
  • Energy Aspects is calling for 0.8mn bpd of demand growth this year and 1mn bpd next year. 
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The worst is now behind us for the Chinese economy according to Energy Aspects director Amrita Sen, adding that the latest stimulus measures will help to get the economy off the ground. 

  • The Chinese economic slowdown has been a big contributor to oil price weakness through September.
  • On the supply side, Amrita said half of Libyan supply is offline, US supply is not growing much, and global inventories are low so it is hard to justify prices where they are now.
  • “I don’t think oil prices will be materially higher in the near-term because of so much uncertainty,” Sen said.
  • Sen notes that such strong backwardation would usually see a stronger flat price while the China stimulus would usually have caused a more significant impact also.
  • Energy Aspects is calling for 0.8mn bpd of demand growth this year and 1mn bpd next year.