These 3 Numbers Suggest Oil Might be Due for an Unexpectedly Big Bounce
Pessimism is pervasive in the oil patch these days. Analysts are slashing their oil price forecasts, with many making dire predictions. Driving this downbeat attitude is the fact that, despite OPEC's efforts to drain the market's supply, oil inventories remain well above their five-year average. The culprit has been a combination of weaker demand growth and higher production from U.S. shale producers as well as Libya and Nigeria, which are exempt from OPEC's output reduction efforts.
That said, recent data suggests that industry fundamentals are getting better. In fact, if these current trends across three key industry metrics continue, crude prices could start rebounding in the coming months, which would be great news for oil stocks since they should ride that wave higher.
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Source: Fool.com
