For the first time in two years there is no longer oversupply in the world’s oil market, newspaper Finansavisen writes.
Oil prices plunged in the summer of 2014, this is no longer an issue. Now oil stocks seem stable worldwide, according to the newspaper.
Oil analyst Torbjorn Kjus of DNB Markets concludes that the supply surplus of oil is over, due to a globally strong demand. At the same time production among oil producing countries fell.
There is so far no particular movement in oil prices even though the production has changed. Kjus believe the market only responds to oil on land, and not what is on the ships.
– It takes time before prices respond to fundamentals. It’s a bit like the stock market, People disagree about whether stability will last, said Kjus.
Next week DNB Markets will release thier semi-annual report on “Economic Outlook”, where they estimate an increase of $ 10 per barrel in the fourth quarter. There are is an estimated price increase to USD 55 per barrel, up from the current 45.
Source: NTB scanpix / Norway Today