Oil price remains low are supply outpaces demand

Crude oil prices are expected to remain low as supply continues to outpace demand in 2016 and more crude oil is placed into storage. The US Energy Information Administration (EIA) estimates that global oil inventories increased by 1.9mn b/d in 2015, marking the second consecutive year of inventory builds. Inventories are forecast to rise by an additional 0.7mn b/d in 2016, before the global oil market becomes relatively balanced in 2017. The first forecast draw on global oil inventories is expected in 3Q2017.