Tuesday, 3 April 2018
By Marcial Nava
Financial market volatility and concerns of raising U.S. oil production have weighed on prices through the first quarter of 2018. However, fundamentals have not changed significantly; thus, we maintain our baseline scenario. Demand will remain supportive of higher prices, but its impact will be compensated by growing non-OPEC supply.
Natural gas production in the U.S. boomed after 2007 thanks to shale production. That boom altered the relationship between oil and natural gas prices.
Does the "new normal" for our economic environment spell trouble for financial stability?