Crude prices may ease further, but rebound by year’s end – Scotiabank

Rory Johnston, Research Analyst at Scotiabank, notes that the oil got a bit ahead of itself in June, breaching $50/bbl.

Key Quotes

“But has since eased as some earlier supply disruptions were resolved and the market focuses on the potential for slower demand growth, an overhang of refined products, and the upcoming seasonal reduction in refinery runs.

Uncertainty remains elevated and it is possible that prices temporarily fall back into the mid-$30s/bbl. However, we would see this as a speed bump and remain of the view that WTI will rise to $50/bbl by year-end and $60/bbl by the end of 2017 on the back of the weak upstream investment and continued reductions in non-OPEC supply.”