Just because it’s cyclical, doesn’t mean every cycle is the same They say history repeats itself, and given the cyclical nature of the oil and gas business, many look to the past when trying to guess what is coming next, but past experience doesn’t always offer an exact model for the present. Much has changed between the 2008 oil and
Oil surplus about 40% smaller than thought a month ago The global glut of oil is shrinking, and the oil surplus is smaller than it was believed to be a month ago, according to the IEA’s June Oil Market Report. The oil surplus in the first half of 2016 is 800 MBOPD, about 40% smaller than estimated in May, and
Unplanned outages continue to shore up the market quicker than expected – OPEC The OPEC Monthly Oil Market Report released Monday shows the group expects oil markets to balance out in the second half of this year. Unplanned supply outages in Nigeria and Canada will help to tighten up markets more quickly, the group said. In its report, OPEC maintained
Production outside of OPEC has started to show more significant signs of rolling over recently, with U.S. production falling below 9.0 MMBOPD for the first time since 2014. Global oil supplies fell 0.3 MMBOPD in March to 96.1 MMBOPD, according to information from the IEA. Along with the fewer supplies is slowing demand growth as well, though, said the IEA.
OPEC expects demand to be around 100 MBOPD lower than last month’s forecast In its March Oil Market Report, OPEC said it is now forecasting weaker demand for its own crude for 2016. The group revised demand expectations for oil produced by OPEC down by 100 MBOPD for full-year 2016. “In 2016, demand for OPEC crude is expected to stand at
Production overhang beginning to slow, but “sustainable price recovery more likely a 2017 event”: Wells Fargo Oil prices continued their gains today as a report from the IEA indicated that prices may have finally bottomed out, and are beginning to recover. In the agency’s March Oil Market Report (OMR), the IEA noted that oil supplies decreased by 180 MBOPD in
Stronger economic data helps lift oil prices Oil prices are on track for the first weekly gain in a month today with both WTI and Brent crude prices up on Friday. U.S. Department of Energy numbers this week showed another build in U.S. crude oil stocks, but gasoline demand rose, stoking some crude oil price gains. Data from the EIA
Increased vehicle fuel efficiencies keeping gasoline consumption low despite increased U.S. mileage Travel by vehicle is up almost 4% from its previous peak in 2007 in the U.S., but motor gasoline consumption remains below previous highs due to increased fuel efficiencies, reports the Energy Information Administration. Improvements in light-duty vehicle fuel economy have been the primary source for lower consumption
Non-OPEC unconventional sources expected to provide growth in supply through 2035 The continued growth of global economies will continue to drive demand for energy around the world, according to BP’s (ticker: BP, BP.com) 2016 Energy Outlook. According to the study’s base case scenario, global GDP will more than double in the next 20 years, with energy demand growing by about
OPEC production expected to stabilize A recent analyst note from KLR Group indicated that oil and gas markets could balance in 2017 as OPEC production begins to stabilize and U.S. production rolls off. Saudi Arabia’s oil production is expected to stay at about 10.4 MMBOPD, while Iran gradually ramps up production and Iraq’s output moderates. The crash in oil prices
The IEA sees continued pressure on oil potentially pushing prices down further In its first Oil Market Report of the year, the International Energy Agency painted a pessimistic picture for the outlook of oil prices. Even as the IEA expects 600 MBOPD of non-OPEC production to fall off during the year, “this will inevitably be largely offset by higher production
Coal loses support as demand in China falters The global coal trade declined for the first time in 21 years in 2014, and likely contracted further this year as well, according to information from the Energy Information Administration (EIA). The global coal trade grew rapidly from 2008 to 2013 as demand in Asia picked up to support expanding economies in
