Some observers believe the market must rebalance before oil prices bottom. But that is not necessarily true for futures prices, which are based on price expectations. Projections show the world rebalancing in the second half of 2017. At that point, oil inventories will be much higher, and oil companies will draw them down if prices rise much. The projection of the U.S. alone coming into balance in a few months seems illogical. Two key issues for oil market investors and traders are whether the market has bottomed and when the market will rebalance. By rebalance, I mean supply and demand are roughly equal such that there are only seasonal stock builds and draws. For reasons discussed in my recent article , I think there is reason to believe that the market has bottomed, although I would not rule out a “test” of the lows. Some analysts seem to believe […]