In general, the supply-demand balance should be supportive for commodity prices in 2017.
Easy monetary policy and rising fiscal spending on infrastructure and defence should lift demand, while OPEC, non-OPEC deal and supply consolidation in some areas should weigh on supply.
Compared to 2016 levels, we look for oil prices to post the biggest gains this year. On average, we expect oil prices to be 25% higher in 2017 versus 2016.
Forward curves have flattened in most commodity markets, but that does not fully take into account factors that will push prices higher this year in our view.
Volatility has come down again, but we would not be surprised to see another spike in volatility in 2017 as a number of uncertain factors loom.
To read the entire report Please click on the pdf File Below