Oil set to recover but oversupply will cap gains

Posted by Nallur Sethuraman, Reuters

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oilrigOil prices are likely to bounce back from six-month lows to end this year higher and climb further in 2016 thanks to rising demand from emerging markets, a monthly Reuters poll showed on Thursday.

But the survey of 30 industry and bank analysts said a global supply glut and strong dollar should cap price gains and keep fuel costs well below recent averages over the next couple of years.

“Prices are at unsustainable lows after an exaggerated selloff,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt…. CLICK HERE to read the complete article