The outlook of most of the commodity markets, particularly crude oil, is dominated by the supply glut conditions. There has been an excess build-up in the production capabilities of non-OPEC energy producers, led by Canadian heavy oil producers and US shale. Saudi Arabia, in a bid to maintain its dominance and low-cost producer in OPEC's status, has boosted its oil output in order to undercut financial feasibility of higher-cost producing firms and regions. Additionally, there will be an added boost in the global production from Iran and other nations in the Middle East and Africa that want to expand revenues.

Unsold crude inventories are at a record on land and on sea in tankers. Even though oil output in the US is being cut, much larger cuts are will be required to rebalance the oil market. On the other side, there is an increase in demand for energy products, led by strong demand from the US, China and India. However, the inflection point is expected to take place later and not sooner, and will need a much stronger global economic growth to raise crude prices higher on a more sustained basis. There is always the possibility that several geopolitical risk factors might raise prices; however, they will more likely add to the chronic instability.