The key difference we see between oil and most other energy markets is supply, where the challenge is replacing declining oil production. Demand, by contrast, responds to economic weakness to similar degrees across the energy spectrum. And with 3Q12 looking as if it will see a very significant tightening of the oil market, our key Global Energy Outlook recommendation is to stay leveraged to oil and to oil-biased equities and credits.

Click here to read the full report: Globa Energy Outlook

Barclays Capital