NY Fed Oil Price Dynamics Report: Lower global demand expectations and looser supply have held oil prices down

The Federal Reserve Bank of New York just released their latest report titled 'Oil Price Dynamics.'

Key highlights:

• Strengthening global demand expectations and a perceived tightening in supply caused oil prices to rebound following a three-week decline.
• In 2017:Q1, steadily loosening supply conditions triggered a decline in oil prices
• The 2017:Q1 developments largely offset the 2016:Q4 oil price increase that was driven by contracting supply and strengthening, albeit volatile, global demand
• Overall, since the end of 2014:Q2, both lower global demand expectations, and looser supply have held oil prices down, though this trend seems to have reversed in 2016:Q2 and 2016:Q4.