Global Markets

When will oil prices bounce?

Low prices are starting to hit global oil and gas production and are stoking demand. Prices will eventually bounce, but only when the overhang of stocks is absorbed Low prices are starting to hit global oil and gas production and are stoking demand. Prices will eventually bounce, but only when the overhang of stocks is absorbed.
By Peter Stewart 16 August 2016 0 24326
Low prices are starting to hit global oil and gas production and are stoking demand. (PA)

A recent study by Houston-based consulting firm Graves & Co. estimated that more than 350,000 jobs in oil and gas production have been lost worldwide since oil and gas prices began their downturn in late 2014. Faced with lower prices, the major companies slashed capital expenditure by around a quarter last year, and further cuts of around 23% have been announced so far in 2016. Operating budgets are being cut to the bone. 

These corporate austerity measures are beginning to take their toll on non-OPEC production,...