HSBC: Why Oil Stocks Will Slump This Year

Spring is in the air and so too is the prospect of a sharp decline in the global oil inventory excess according to HSBC’s Natural Resources & Energy research team. In a research note published at the beginning this month, the team headed by Gordon Gray Global Head of Oil & Gas Equity Research proclaims that they expect decisive oil inventory falls in the coming weeks as OPEC supply cuts are more fully reflected in data … and that is bearish for Global Oil Stocks.

Overall, the team sees global oil stocks falling by 0.6 million barrels this year, but the fall could be more than 1 million barrels if OPEC extends its cuts through the second half. This...