In an update to our Oil & Gas Markets Outlook issued in Q1 2017 the early indicators of a more stable oil price with likely upward movement have proved unfounded and have actually fallen by about 10% since May.
This is despite OPEC and Russia agreeing to extend production cuts until the end of March 2018 but as a counter balance US shale producers and other countries outside OPEC have continued to increase production.
Geo-politically this continues to erode OPEC’s power to be able to manipulate the oil price for the benefit of its members and strengthens the hand of those producers that are able to innovate quickest to drive costs down.
What impact does this have on the office markets of the primary oil producers? Below we have indicated the 12 month percentage changes and direction of travel on a few key cities as barometer for the wider regions:
|Rio de Janeiro||-2.0%|
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