Legacy Wealth Weekly - June 12th, 2015 (OPEC, REITs, Short-Term Energy Outlook)

Penni Johnston-gill - Jun 12, 2015

OPEC announced last Friday that it was not adjusting its oil production quotas. While OPEC dominates the headlines, our energy research team believes that US shale oil now represents the swing barrel in global oil production. Page three's Chart of th

OPEC announced last Friday that it was not adjusting its oil production quotas. While OPEC dominates the headlines, our energy research team believes that US shale oil now represents the swing barrel in global oil production. Page three's Chart of the Week predicts the US production decline will drive a rebound in oil prices.

 

Managing Director of Real Estate Research Mark Rothchild is positive on the REIT sector and has forecasted double digit returns from most REITs. He expects a modest increase in long term interest rates which should have limited upward pressure on cap rates. REIT yields should remain attractive.

 

North American Portfolio Strategist Martin Roberge has a positive outlook for global oil prices after the Short-Term Energy Outlook released by the EIA. According to the EIA, total U.S. crude oil production averaged an estimated 9.6 million b/d in May, but production is expected to generally decline from June 2015 through early 2016 before growth resumes. The EIA net oil consumption figure is shown in Martin's Chart of the Week

 

The Canaccord Genuity research included in the Legacy Wealth Weekly is solely for Canadian residents. To subscribe to our weekly newsletter,click here.