GREY:BXEFF - Post by User
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CanadianBuckon Feb 13, 2015 8:57am
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Blackrock Investment Institute Oil Comments
Blackrock Investment Institute Oil Comments
Oil could rise to an equilibrium level of about $65 a barrel within the next 12 months thanks to a pickup in demand largely centred in the United States, says Blackrock Investment Institute. Blackrock says, "It would only take a moderate shift in demand to restore balance to the oil market," because spare production capacity is a mere 4 per cent. That compares with excess supplies of about 18 per cent during similar price nosedives that pummelled producers in the mid-1980s. Any price drop of more than 15 per cent in a single quarter makes it four times more likely that demand will rise in the following three months than if prices had dipped by smaller amounts, says Blackrock strategist Ewen Cameron Watt. BXE reserves about 68% gas but gets about 50% of revenues from oil.