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3 Years Of Painful Cuts Sets Oil Markets Up For Serious Supply Crunch

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According to a separate report from SAFE, a Washington-based think tank, the oil industry has cut somewhere around $225 billion in capex in 2015 and 2016, which will lead to global supplies 4 million barrels per day lower in 2018-2020, compared to what market analysts expected as of 2014.

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Strong Dollar Could Cap Oil Prices

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dollar poses an obstacle to further gains in oil prices. As Reuters points out , in dollar terms the price of Brent oil has climbed 9 percent this year, but in yuan terms oil is now nearly 14 percent more expensive. The problem for many emerging markets is that oil prices have been going up at the same time.