It has been a long, hard slog for oil and gas prices but stronger commodity markets are in the offing, according to a pair of trading experts.
Speaking at a S&P Global Platts forum entitled “Feast or Famine—A 360-Degree Oil & Gas Outlook” Sept. 28, Brian Milne, editor and project manager for DTN, discussed oil. Meanwhile, Ryan Ouwerkerk, senior pricing specialist for S&P Global Platts, focused on gas.
Milne noted that “after three years of oversupply, we’re beginning to see more demand for crude” as 2017 ends. As demand ticks up, the increase in supply seems to be leveling out too, he said. He said OPEC “is half way there” in its goal of cutting production 1% even as Libya and Nigeria—which were not part of the production cutback deal announced in late 2016—brought 600,000 bbl/d of production back on the market.