Data suggests that oil producers need prices in the $70-80 range to survive. That is unlikely in the next year or so. Without more timely price relief, the future looks grim for an industry on life support. EIA Revises Consumption Upward Major EIA revisions to world oil consumption* data provide a new perspective on oil-market balance. The world was over-supplied by only 570 kbpd of liquids in April compared to EIA’s earlier estimate for March of 1,450 kbpd; that March estimate has now been revised downward to 970 kbpd (Figure 1). February’s over-supply has been revised downward from 1,180 to 240 kbpd. These revisions indicate that oil markets are much closer to balance than previously thought . (Click to enlarge) Figure 1. EIA world liquids market balance (supply minus consumption). Source: EIA and Labyrinth Consulting Services, Inc. The EIA adjusted world consumption growth for 2016 upward […]