Fed's Kaplan: He expects oil market to come into balance in early or mid-2017

Kaplan is the Dallas Fed President

Goldman Sachs and many other market watchers have been talking about balance returning into the market in mid-2016. This pushes that forecast back another year and argues for a further decline in oil prices.

He said that 'a couple years from now' it's a good bet that oil prices will be higher but adds that the energy situation may get a little worse before it gets better. Yesterday's EIA weekly oil inventory data underscored the amount of oil in storage.

Kaplan is in the oil-producing hub of the US, so he's likely to have some good contacts in the area.