Not much excitement over oil market rebalancing

Higher cost: A file picture showing an oil pump in operation in the Permian Basin in the US. The cash operating costs of major shale producers have been inching up over the past few months. — Bloomberg

NEWS that the oil market is starting to rebalance has not stirred much excitement and price expectations remain modest.

While US$50 per barrel for US crude or West Texas Intermediate (WTI) is considered a psychological barrier, the market is waiting for more data on oil inventory and possible extension of production cuts.