Oil Price Drivers
Bottom of the Barrel?
Over recent years, the fundamentals governing the global price of oil have altered significantly. On the supply side, production from outside the Organisation of the Petroleum Exporting Countries (OPEC) has grown, driven by the deployment of new technologies such as hydraulic fracturing. On the demand side, a slow-down in economic growth from emerging economies, particularly China, has dampened demand. The decision by OPEC not to cut production to balance the market has caused a sustained downshift in the oil price, with major implications for the global economy.
Recognising the far reaching economic impacts of such a downshift, FTI Consulting EMEA has commissioned Dr. Stuart Amor, an internationally-respected oil and gas analyst, to prepare this independent research paper. Therefore this paper does not represent an FTI Consulting ‘house view’ but is rather a contribution, via Dr. Amor, to stimulate debate among industry players and policymakers.
The paper offers an analysis of how the drivers of the oil market have changed and assesses potential future price paths for what continues to be a key global commodity.