June 2016

The price of oil has nearly doubled since the lows of $27 per barrel reached at the end of January. The growing consensus among market analysts is that a market recovery is underway, with one analyst going as far as predicting that oil will reach $85 per barrel by Christmas. A glance at the evidence greatly supports this – OPEC’s failure to agree on a quota hasn’t curtailed the price rally, there is a steady drop in non-OPEC (read US shale) output, and a summer driving season is giving oil demand a boost.