Oil expected to whipsaw en route to normalcy

Singapore

THE oil market faces a bumpy ride on its way to recovery later this year.

While the failure of talks between producers to freeze output is bearish for crude, an oil-worker strike in Kuwait that's cut its output may support the market, Goldman Sachs Group and Barclays said in separate notes, warning of increased volatility. Citigroup also predicted swings even as it said prices are too low to sustain supply at levels required to compensate for declines from older fields and to accommodate demand growth.