Summary
– Global oil inventories reached all time highs of 2.975 billion barrels. U.S. inventories stand at all-time highs of 482 million barrels.
– Global oil supply exceeded demand by 1.47 million barrels per day in 2015. Despite healthy demand growth forecasted at 1.2 million bpd in 2016, supply will mostly likely outpace demand.
– Saudi Arabia’s $640 billion currency reserves and the potential for a Saudi Aramco IPO are a “checkmate” scenario for highly leveraged and high cost U.S. Shale producers.
