The IEA (International Energy Agency) made the following statement in its Oil Monthly Report yesterday that supposedly sent oil prices lower by $2.41 per barrel for Brent and $2.21 per barrel for WTI: “Steep drops in the US rig count have been a key driver of the price rebound. Yet US supply so far shows precious little sign of slowing down. Quite to the contrary, it continues to defy expectations. Output estimates for 4Q14 North American supply have been revised upwards by a steep 300 kb/d.” IEA’s comments on U.S. oil production trends are misleading. When IEA says “oil” they mean “liquids” so their number includes natural gas liquids which add more than 3 million barrels per day on top of U.S. crude oil supply that largely come from natural gas production and not from oil production. Also, IEA is talking about the 4th quarter of 2014 which is […]