IEA sees bear oil market as stocks balloon
The world is awash with oil after having built record stockpiles in recent months and slowing demand growth combined with resilient non-OPEC supply could worsen the glut well into next Continue Reading
IEA Says Record 3 Billion-Barrel Oil Stocks May Weaken Prices
Oil stockpiles have swollen to a record of almost 3 billion barrels because of strong production in OPEC and elsewhere, potentially deepening the rout in prices, according to the International Energy Agency. This “massive cushion has inflated” on record supplies from Iraq, Russia and Saudi Arabia, even as world fuel demand grows at the fastest pace in five years, the agency said. Still, the IEA predicts that supplies outside the Organization of Petroleum Exporting Countries will decline next year by the most since 1992 as low crude prices take their toll on the U.S. shale oil industry. “Brimming crude oil stocks” offer “an unprecedented buffer against geopolitical shocks or unexpected supply disruptions,” the Paris-based agency said in its monthly market report. With supplies of winter fuels also plentiful, “oil-market bears may choose not to hibernate.” Oil prices have lost about 40 percent in the past year as the OPEC […]
Oil Market Report
mb/d World Oil Demand *Please note that these Highlights are from the latest Oil Market Report, which is released in full to subscribers only – according to this schedule each month . Non subscribers get free access to the latest Highlights on this schedule, however the full Oil Market Report is released to the public two weeks after the report is released to subscribers. If you would like to receive the full report with accompanying charts and graphs on the day of publication please subscribe or contact the subscription manager . Crude oil benchmarks were locked in a narrow range during October as continuing oversupply in world markets and a strong US dollar limited the impact of strikes in Brazil and geopolitical tensions. At the time of writing, ICE Brent was trading at $44.43/bbl and NYMEX WTI at $41.75/bbl. Global demand growth is forecast to slow to 1.2 mb/d […]
Global Oil Demand Growth to Slow in 2016, IEA Says
Workers connect drill bits and drill collars in the Permian basin outside of Midland, Texas…. Global oil demand will ease next year on the weaker outlook for the world economy and oversupply in the market, the International Energy Agency said on Friday. The IEA said global demand growth is forecast to slow to 1.2 million barrels a day in 2016 after surging to 1.8 million barrels a day this year. Economic conditions are expected to remain problematic in countries such as China, and factors that have recently fuelled consumption are expected to fade, it said. Commercial stocks from countries in the Organization for Economic Cooperation and Development stood at a record near 3 billion barrels by the end of September, even as the global oil market adjusts to oil trading at $50 a barrel oil. “The net result is brimming crude oil stocks that offer an unprecedented buffer against […]
Oil glut to swamp demand until 2020
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IEA Sees OPEC Market Share Growing From 2020 a Rivals Stagnate
OPEC’s share of the global oil market will expand from 2020 as prices recover to $80 and supply outside the group stagnates due to spending cuts, according to the International Energy Agency. The Organization of Petroleum Exporting Countries’ share of global supply will remain steady at 41 percent until 2020 then rise to 44 percent by 2025, two percentage points higher than the IEA forecast a year ago. Production growth from countries not part of OPEC will slow over the next five years and halt by 2020, as crude prices recover to $80 a barrel. OPEC’s decision last year to defend its market share rather than cut production to support prices has curbed growth of rival supplies like U.S. shale oil. While the resulting 40 percent slump in crude prices has “sharply” reduced the group’s revenues, it will eventually prove beneficial for members that are able to increase output, […]
$80/Bbl Oil By 2020, Says IEA
0836 GMT — The oil markets should be rebalanced and prices should be in the $80 a barrel range by 2020, according to a new report issued by the International Energy Agency. The Paris-based watchdog’s World Energy Outlook 2015 states that the “process of adjustment in the oil market is rarely a smooth one” but that there should be an equilibrium by the end of the decade. The forecast will not be met with much enthusiasm by many of the world’s oil producers, because most rely on oil revenues as the main source of government income. The Dec Brent contract trades flat at $47.19 a barrel.
Oil glut to swamp demand until 2020
The oil market will remain oversupplied until the end of the decade as an unstoppable push for cleaner fuels and greater efficiency offsets the effect of lower prices, the world’s Continue Reading