HSBC comments on the oil market:
HSBC economist Fred Neumann:
- "the problem... lies with all the extra supply (e.g. Iran) that has poured onto markets. That means that even a (demand) pick-up in China, in any event likely to be marginal, may not be enough to sustain the latest rally."
- To reduce the supply overhang, Neumann said "more supply destruction is needed. And that, amid record low interest rates, will take some time."
