Barclay's calls sharp oil correction in 2018

With all the bullishness raging on in oil now, especially after Libya's pipeline attack that took some 90,000 bpd offline for at least a week, pushing WTI to $60 and Brent well above, Barclays is calling a sharp oil correction in the New Year. They say the fundamentals are likely to disappoint and with oil having rallied, the correction will be sharp.

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How are the fundamentals set to disappoint? 

1. OPEC is seeing high compliance
2. Venezuela production is plummeting
3. Libya is seeing major disruptions now
4. Nigeria is always toying with disruptions
5. Iraq is uncertain...

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Barclays expects China's growth to slow and put downward pressure on demand for commodities. 

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Balancing out Goldman Sachs headline-grabbing bullishness, but Barclay's bearishness is based on a bigger picture. The bulls are looking at direct oil fundamentals but now the bigger economics that support those fundamentals. 

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