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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 prices fell to their lowest in nearly three months in early July, pressured by ever rising supply while financial turmoil in Greece and China unsettled world markets. At the time of writing, Brent was around $59/bbl and US WTI at $53.10/bbl. Global oil demand growth is forecast to slow to 1.2 mb/d in 2016, from an […]

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Survey: OPEC keeps plugging away

Platts survey finds oil production from OPEC increased in June, the fourth straight month of gains in an already oversupplied market. Photo by sakhorn/Shutterstock HOUSTON, July 7 (UPI) — Output from Saudi Arabia and Iraq helped lead to the fourth straight monthly increase from the Organization of Petroleum Exporting Countries, a survey found. A survey by energy reporting service Platts finds OPEC production in June reached 31.3 million barrels per day, a 5.5 percent increase from May and the fourth straight month of gains from the 12-member group. Saudi Arabia, the de facto leader of OPEC , produced an average 10.3 million bpd in June, about 1 million barrels more than the United States. The increase in production from U.S. shale basins is keeping markets weighted on the supply side. Saudi Arabia has said it would keep its output higher despite the glut in an effort to stay competitive […]

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North Dakota governor sees OPEC ceding global swing status

BISMARCK, N.D. OPEC’s decision this month to maintain existing oil output will fail to push rival producers out of the market because rising global crude demand should soon lift prices and boost drilling activity, North Dakota Governor Jack Dalrymple said. Since November, the Saudi Arabian-led cartel has held to a policy of unconstrained output, an approach many suspect is designed to flood global markets with more crude, push prices lower and punish rivals, including North Dakota, the second-largest U.S. oil producer. "It’s not surprising that Saudi Arabia would finally make a decision that they are not going to be the sole equalizer of supply and demand around the world," Dalrymple said in an interview with Reuters this week at his capitol office. "They are going to expect other countries to be part of controlling supply." Yet the strategy seems to have backfired, as producers have had to become leaner […]

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OPEC 2014 Exports Below $1 Trillion; First Time Since 2010

The value of OPEC members’ petroleum exports fell below $1 trillion in 2014 for the first time since 2010, according to its annual report, demonstrating the toll last year’s oil-price collapse took on the group. Exports from the Organization of the Petroleum Exporting Countries fell in value to $993.3 billion last year, from $1.112 trillion in 2013, the report said, as oil prices fell below $60 a barrel at the end of 2014 from highs above $114 last summer. The report illustrated the shifts rocking the oil industry and OPEC’s 12 member nations before the producer group made its historic decision last November and abandoned its role of regulating the market through production cuts. Now, the group’s members are pumping flat out and fighting for markets against private oil companies, other nations and among themselves. Before ramping up to about 31 million barrels a day of production this year, […]

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IEA: Global oil demand rising on economic recovery, lower oil prices

According to the International Energy Agency’s most recent Oil Market Report , global oil demand averaged 93.3 million b/d in this year’s first half, up 1.6 million b/d on the year and 400,000 b/d above the estimate in last month’s report. Global demand for the whole year is forecast to average 94 million b/d, 1.4 million b/d up on the year and 300,000 b/d higher than in last month’s OMR. “Since bottoming out at a 5-year low in second-quarter 2014, global oil demand growth has steadily increased, as additional economic growth, colder-than-year-earlier European winter weather conditions and more recently price effects have filtered through,” IEA said. However, momentum is expected to ease somewhat in this year’s second half, assuming a return to normal weather conditions and given a recent partial recovery in oil prices. Global oil production fell 155,000 b/d in May to 96 million b/d as a small […]

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Oil demand rises after price drop, but supply strong: IEA

LONDON World oil demand will rise much more than expected this year, the International Energy Agency (IEA) said on Thursday, in the latest sign that the collapse in oil prices is helping to boost fuel use. The Paris-based agency also pointed to "exceptionally high" growth in global supplies, forecasting OPEC crude production would remain near May’s multi-year high and boosting its projection of supplies this year from other producers. In a monthly report, the IEA raised its forecast for global oil demand growth in 2015 by 280,000 barrels per day (bpd) to 1.40 million bpd, bringing demand this year to almost 94 million bpd. "Recent oil market strength of course partly stems from unexpectedly strong global oil demand growth," said the IEA, which advises industrialized nations on energy policy. Oil prices have recovered this year after hitting a near six-year low close to $45 a barrel in January. Prices […]

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Global Oil Demand Rising, IEA Says

Low oil prices and economic growth have helped drive up consumer demand for energy across the world in 2015, the International Energy Agency said Thursday, a phenomenon seen from U.S. gasoline stations to Chinese auto dealerships. The IEA’s closely watched oil-market report lent some support to an idea pushed by the Organization of the Petroleum Exporting Countries and other producers: that collapsing oil prices would spur more consumer demand and eventually send prices back up. The benchmark U.S. oil price hit a six-month high on Wednesday. The IEA said world demand for oil would increase by 1.4 million barrels a day this year, 300,000 barrels a day faster than it previously forecast, to a daily average of 94 million barrels this year. Global demand in 2014 was about 92.6 million barrels a day, the IEA said. That was driven in part by gasoline-demand growth of 4.2% in the U.S., […]

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The IEA 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 . Product market strength and rising tension throughout the Middle East supported global crude oil prices in May and through early June. At the time of writing, ICE Brent was trading at around $65.95/bbl, while US WTI was at $61.50/bbl. Global oil supplies fell by 155 kb/d in May to 96 mb/d on lower non-OPEC output, but remained at […]

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OPEC + Different EIA Data

The latest OPEC Monthly Oil Market Report is out. There were no big surprises. OPEC 12 OPEC crude only production was up 23,000 bpd in May but that was after April had been revised upward by 110,000 bpd. Saudi Arabia Almost no change is Saudi production, down 5,000 bpd to 10,107,000 bpd. Iraq had the largest change of all, up 105,000 bpd to 3,800,000 bpd. Kuwait suffered the largest drop in May, down 77,000 bpd to 2,685,000 bpd. Secondary Sources Above are the total changes for all OPEC countries. The top chart, “Secondary Sources” is the one I always use. OPEC is expecting world oil supply to grow by 680,000 bpd in 2015. World Oil Supply Non-OPEC oil supply in 2015 is projected to grow by 0.68 mb/d, in line with the previous forecast and below last year’s strong growth of 2.17 mb/d. OPEC NGLs are forecast to grow […]

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OPEC Decision Doesn’t Intimidate

OPEC to Keep Oil Production High OPEC announced last Friday that it will stick with its policy to produce oil at a high rate, a measure that may signal they are underestimating Bakken producers. If the measure by OPEC was meant to intimidate U.S. energy producers, they may want to try again. Despite this tactic to crush competitors, U.S. oil companies have worked to streamline operations an become more efficient. Many now claim they can remain profitable at the lower crude prices for some time. Lynn Helms, head of North Dakota’s Department of Mineral Resources says that “OPEC is still is our main competition. But what you’re seeing now is the Bakken becoming the swing producer, something that has happened relatively quickly because of efficiencies in drilling and completion technology” In response to OPEC’s announcement, oil prices fell on Monday and analysts project this will prolong the supply glut […]

Posted On : Published By : Tom Whipple