BMI View: The oil market will once again be operating with a supply deficit in 2012, though the pressure should ease towards the latter half of the year as production starts to catch up with demand. This supply tightness has contributed to elevated oil prices and a high level of price volatility since 2010, which we expect to see again in 2012. The BMI global oil supply and demand assumptions have again been revisited, reflecting changes in the oil market and broader macroeconomic trends. As we look ahead to 2012, there are positive signs that with the supply picture having deteriorated significantly over the last two years, producers are finally starting to catch up with demand from consumers. However, while a weak short-term demand outlook and relatively bright supply forecast should see supply pressures ease somewhat, we forecast that the oil market will once again operate at a deficit in 2012, necessitating further stock draw downs. Supply tightness has contributed to elevated oil prices and relatively high levels of price volatility since 2010, and that is likely to continue into 2012.