Oil and Gas: When Will Global Oil Markets Rebalance?

The most pressing question on the minds of energy investors is hardly a surprise: How long will it take for the industry to work through the current period of oversupply and rebalance itself? The answer, unfortunately, is "not any time soon". Current supply imbalances are such that as of today, oil production is effectively running two years ahead of demand. Declining U.S. oil production during the next several quarters will help reduce global oversupply, but in our opinion that alone cannot quickly fix the current global imbalances.