Chart of the week: Oil bounces, but don’t expect a surge

Benchmark Brent oil futures have bounced by 40%, but aren't likely to surge back to the $100 a barrel region anytime soon.

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Benchmark Brent crude oil futures have bounced by 40% since they hit a six-year low in January. But while oil may well have bottomed, it isn't likely to surge back to the $100 a barrel region soon. The fundamentals "have not changed much", says Harry Tchilinguirian of BNP Paribas. Global demand growth next year is set to reach just half of 2010's pace, according to America's Energy Information Administration, largely as a result of the slowdown in China.

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