From The Fuse
Source: The Fuse
The U.S. Energy Information Administration’s (EIA) global oil demand forecasts have grown increasingly bullish over the past year, in part a reflection of the agency’s growing confidence that demand from non-OECD countries, most notably China, will continue to rise. EIA said in its latest monthly outlook that growth would average 1.6 million barrels per day (mbd) in 2017, some 400,000 b/d higher than the forecast a year ago, and a full 200,000 b/d higher than the International Energy Agency’s 2017 global oil demand projection. A historically bullish forecaster, EIA increased its baseline estimates for 2013-16 by about 900,000 b/d to account for higher demand in some non-OECD countries. Its latest outlook for 2017 pegs world liquids consumption at 98.1 mbd, 1.7 percent higher than its current 2016 global demand estimate. Despite OPEC’s recent production cut and rising demand, high commercial inventories and increased shale output may prolong market rebalancing.
