Oil Cover

Oil Market Snapshot — July 2015

  • Brent retreated further to $54.08/bbl on 29th July as the P5+1 and Iran reached an accord on its nuclear programme and the dollar strengthened on Eurozone’s economic woes
  • We have trimmed our global demand growth outlook on new IMF GDP forecasts, but we continue to forecast strong production growth of 1.38 million b/d in 2015 and 1.22 million b/d in 2016
  • We see OPEC adding 1 million b/d production in both 2015 and 2016 as Saudi Arabia overhauls production capacity, and Iraq and Iran both add new production
  • Non-OPEC supply remains resilient this year, but we see volumes declining in 2016 as US LTO falters
  • Mexico’s first lease sale disappointing but more attractive deepwater acreage will be available early next year
  • The Gulf of Mexico deepwater rig market is currently oversupplied, but may revive again in 2017

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