Crude market marks a turning point toward balance
This year we have an excellent opportunity to observe a turning point for oil toward a more balanced energy market, though the lower crude-price environment, uncertainties surrounding environmental policies and well as market instability will continue to muddle the long-term outlook for the energy market. That’s what we’ve learned from the OPEC’s annual report released on Tuesday.
The crude market has shown clear signs that it’s actually heading toward a more balanced situation since the previous outlook report was issued in December of the previous year.
Crude prices have suffered from hefty drops for the last two years because of a glut in American as well as global crude-oil supplies.
In New York, crude futures lost 0.22%, being worth $45 per barrel, up more than 20% year to date, while they’re down by more than half from their high above $105 in mid-June 2014.
OPEC’s annual reference basket price, calculated from approximately 14 different types of oils, stands at $39.51 so far this year, vs. $96.29 per barrel in 2014.