According to a research note published by UBS at the beginning of this month, the oil market is starting to show some signs of strength as demand ticks higher. Nevertheless, additional supply will keep prices depressed for the foreseeable future.
Demand growth
UBS picks up on data from the International Energy Agency. The IEA has raised its 2015 oil demand growth forecast by 0.3 million barrels a day, to 1.4 mb/d, from the previous estimate of 1.1 mb/d. This revision has been driven by a stronger than expected economic recovery, coupled with colder weather.
However, while the IEA is more optimistic about the...
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