Post Tagged with: "IEA"

Source: Houston Chronicle

Oil rally continues as virus fears show signs of easing

Houston Chronicle Oil gained for a fourth session, the longest rising streak this year, amid signs that the worst impacts of the coronavirus outbreak may be easing. Chinese refiners have used oil’s earlier drop to snap up cheap cargoes, taking many traders by surprise. That follows the World Health Organization’s view that the sharp increase in the number of virus cases reported in China’s Hubei province this week doesn’t necessarily reflect a sudden jump in new infections. It’s not just crude prices that have staged a recovery since falling to the lowest level in a year on Monday. The market’s structure also rallied into a backwardation, indicating some of the oversupply may have eased. The three major oil-forecasting agencies have shown a wide divergence on how severely they expect the virus to affect energy consumption. The Organization of Petroleum Exporting Countries, the International Energy Agency and the U.S. Energy Information[Read More…]

Source: CNBC

Global oil demand set to see first quarterly decline in over 10 years, IEA says

CNBC Global oil demand is now expected to see its first quarterly contraction in over a decade, according to the International Energy Agency (IEA), as the new coronavirus and widespread shutdown of China’s economy hits demand for crude. Demand is now expected to fall by 435,000 barrels a day (b/d) in the first quarter of 2020, down from the same period a year ago, and marking the first quarterly contraction in more than 10 years, the IEA said in its monthly oil market report Thursday. The expected decline in demand prompted the agency to cut its 2020 growth forecast by 365,000 b/d to 825,000 barrels a day, the lowest since 2011. Lower-than-expected consumption in the OECD countries trimmed 2019 growth to 885,000 b/d, it also said. The forecast downgrade comes as the coronavirus, which has infected over 59,000 worldwide and killed over 1,300 people, continues to weigh on global market sentiment and China’s[Read More…]

February 13, 2020 - 1:00 pm China, Closing Bell Story, Crude Oil News, Energy News, International
Source: CNBC

Global oil demand to peak around 2040 or ‘much sooner,’ IMF says

CNBC Global oil demand will peak around 2040 – or “much sooner” – the International Monetary Fund (IMF) said in a new report on the future of oil. The IMF said that this could have a “significant” impact on oil-exporting countries, predominantly those in the Middle East whose existing financial wealth could be depleted in the next 15 years if major reforms aren’t undertaken. “Growth of global oil demand will significantly decelerate, and its level could peak in the next two decades,” the IMF said in its report entitled, “The Future of oil and fiscal sustainability in the GCC Region,” published Thursday. The IMF said analysis of past oil market developments revealed “a strong and sustained declining trend in the global oil demand, after accounting for income and population growth.” This reflected a range of factors, the IMF said, such as long-term improvement in energy efficiency and substitution away from[Read More…]

Source: Reuters

Oil slides 2% as surplus forecast overshadows Libya disruption

Reuters NEW YORK (Reuters) – Oil prices fell more than 2% on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries outweighed concern over disruptions to Libya’s crude output. Brent crude LCOc1 was down $1.39, or 2.2%, at $63.20 a barrel by 11:09 a.m. ET (1609 GMT). West Texas Intermediate CLc1 fell $1.46, or 2.5%, to $56.92. The head of the IEA, Fatih Birol, said he expects the market to be in surplus by 1 million barrels per day (bpd) in the first half of this year. “Oil prices remain heavy on oversupply concerns and after the Saudi Energy Minister Price Abdulaziz did not offer any hints of optimism that the OPEC+ production cuts would be extended beyond March,” said Edward Moya, senior market analyst at OANDA in New York. “China’s coronavirus will likely see travel restrictions that could end up hurting demand for[Read More…]

Source: Reuters

Oil steadies as Chinese economy offsets trade optimism

Reuters NEW YORK – Oil prices steadied on Friday as sluggish economic growth in China, the world’s biggest crude importer, raised concerns over fuel demand and countered optimism from the signing of a China-U.S. trade deal. Brent crude LCOc1 futures rose 9 cents to $64.71 a barrel by 11:19 a.m. EST (1619 GMT). U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 3 cents to $58.55 a barrel. For the week, both benchmarks were little changed. Brent was due to fall 0.5%, while WTI was on track for a 0.9% loss. China’s economy, the world’s second-largest, grew by 6.1% in 2019, its slowest expansion in 29 years, government data showed on Friday. “Mounting downward economic pressure will perhaps limit oil’s upside in the mid- to long-term,” said Margaret Yang, market analyst at CMC Markets. But surging Chinese demand, as seen in refinery throughput figures, helped offset the less positive economic[Read More…]

January 17, 2020 - 3:00 pm China, Closing Bell Story, Commodity Pricing, Energy News, Finance
Source: Houston Chronicle

Oil has nearly made back week’s losses

Houston Chronicle Oil erased most of its loss for the week, as the price gain after the signing of the U.S.-China trade agreement offset signs that supplies remain plentiful.   The phase-one deal committed Beijing to $52.4 billion in additional purchases of American energy in the next two years. The easing of trade hostilities, combined with a solid start to American earnings season and some promising economic date from China, shows signs of stabilizing the oil market after a sharp drop last week. “The signing of the U.S.-China trade deal has given optimism for a revival in global manufacturing, and thus stronger oil demand growth,” said Bjarne Schieldrop, Oslo-based chief commodities analyst at SEB AB. “This is what gives the oil price some vigor.” West Texas Intermediate futures for February delivery added 34 cents to $58.86 a barrel on the New York Mercantile Exchange on Friday morning. The front-month contract[Read More…]

Source: CNBC

‘Big uncertainty’ over US oil output in 2020 will be critically important to oil prices, analysts say

CNBC The question of how much crude U.S. producers may be able to add this year could be pivotal for oil prices in 2020, analysts told CNBC, while warning of the potential for “vicious corrections” in the coming months. Speaking to CNBC’s “Squawk Box Europe” on Thursday, Chris Weafer, a senior partner at Macro-Advisory, suggested three “critical factors” were set to have the greatest influence over crude futures this year. The first two factors were identified as oil demand growth and the current deal between OPEC and its allied partners. The group, often referred to as OPEC+, agreed to cut oil production by an additional 500,000 barrels per day (b/d) from Jan. 1, further deepening their previous cut of 1.2 million b/d. “The big uncertainty this year — and it is already beginning to be talked about — is: Can or will U.S. producers be able to continue to add as much extra volume as[Read More…]

Solar expected to lead renewable development in next five years: study

Solar expected to lead renewable development in next five years: study

Source: Houston Chronicle Global capacity of renewable power is expected to grow by 50 percent in the next five years, reflecting a surge in new solar energy systems on  commercial buildings, industrial sites and homes. The Paris-based International Energy Agency whose 30 member countries  work to supply reliable energy sources predicted an increase of 1,200 gigawatts of renewable power capacity by 2024 — equivalent to the current total U.S. power capacity — will be driven by lower costs and government policies that promote renewable energy with new solar installations accounting for 60 percent of the increase. The agency predicts the share of renewables in global power generation will increase to 30 percent in 2024, up from 26 percent today, reversing a stall last year in new renewable capacity after growth for nearly two decades. The expected expansion however is still less than what is needed to meet sustainable energy goals[Read More…]

Oil Steadies as Saudi, Kuwait Signals Offset Demand Fears

Oil Steadies as Saudi, Kuwait Signals Offset Demand Fears

From Reuters Oil prices were little changed on Monday as expectations that major producers would continue to reduce global supplies ran into worries about sluggish growth in crude demand due to the U.S.-China trade war. International benchmark Brent crude settled at $58.57 a barrel, up 4 cents. West Texas Intermediate (WTI) futures settled at $54.93, up 43 cents. Investors were torn between forecasts of slowing global oil demand growth and chatter about renewed efforts by major producers to curtail output and support prices, analysts said. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have agreed to cut 1.2 million barrels per day (bpd) since Jan. 1. Kuwait was “fully committed” to the OPEC+ agreement, Oil Minister Khaled al-Fadhel said, adding that Kuwait has cut its own output by more than required by the accord. He said fears of a global economic downturn were “exaggerated,” and[Read More…]

Oil Rises on European Stock Draw Despite Demand Slowdown Forecast

Oil Rises on European Stock Draw Despite Demand Slowdown Forecast

From Reuters Oil prices rose more than $1 a barrel on Friday, supported by a drop in European inventories and OPEC output cuts despite the International Energy Agency reporting demand growth at its lowest since the financial crisis of 2008. Brent crude LCOc1 futures gained $1.15, or 2%, to settle at $58.53 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.96, or 3.7%, to settle at $54.50 a barrel. “Despite a further cut in oil demand growth by the IEA, oil prices are trading marginally higher, as the demand growth cut was already announced previously by the head of the IEA and the agency still expects larger inventory draws for 2H19,” said UBS analyst Giovanni Staunovo. The IEA said global oil demand to May from January grew at its slowest since 2008, hurt by mounting signs of an economic slowdown and a ramping up of the U.S.-China[Read More…]

BP to Enter India’s Fuel Retail Market with Reliance Tie-Up

BP to Enter India’s Fuel Retail Market with Reliance Tie-Up

From Reuters Global oil major BP is deepening its ties with Indian conglomerate Reliance Industries by forging a fuel retailing joint venture to capitalize on rising demand in Asia’s third-biggest economy. The move comes days after BP said it would build a network of charging hubs for electric vehicles with China’s Didi Chuxing, betting on the world’s largest market for such cars. BP will own a 49% stake in its new Indian joint venture, with the rest held by Reliance, operator of the world’s biggest refining complex. The companies did not disclose financial details of the deal. In 2011 BP acquired a 30% stake from Reliance in some of its exploration blocks and formed a gas sourcing and marketing tie-up. In 2017 the two companies signed agreements to explore options to work together to develop alternative fuels and mobility businesses. The new venture will take over Reliance’s 1,400-plus retail fuel[Read More…]

Gas is Part of the Solution in the Planet’s Energy Transition, Goldman Sachs Strategist Says

Gas is Part of the Solution in the Planet’s Energy Transition, Goldman Sachs Strategist Says

From CNBC Gas has an important role to play in the global energy transition, according to the head of EMEA natural resources research at Goldman Sachs. Speaking to CNBC Friday, Michele Della Vigna said that, in his personal view, gas was “part of the end solution.” According to the International Energy Agency, natural gas supplies 22% of energy used globally. “Renewables make perfect sense up to 50% of the power generation because … you can still manage the unreliability of supply and the timing of demand,” he added. When you go above 50% renewables, he explained, things change. “You can only do it without gas fired powered generation if you put batteries in, and today batteries are not economic, they are not in the right part of the cost curve and their manufacturing process uses materials which are scarce,” Della Vigna said. The term “global energy transition” can be seen[Read More…]

Source: Sweetcrudereport.com

Global Economic Slowdown Reducing Oil Demand

By Tyler Losier, Energy Reporter, Oil & Gas 360 Supply deficit quickly flipped to surplus: International Energy Agency data now shows 500,000 barrel per day global surplus for Q2 2019 Despite the OPEC+ supply cuts agreed upon earlier this month, a slowdown of the global economy is dampening oil demand, leading to a larger-than-expected surplus in crude reserves. According to an International Energy Agency (IEA) report released July 12, worldwide oil supply for the first half of 2019 has exceeded demand by 900,000 BOPD. For Q2 2019, data shows a global surplus of 500,000 BOPD, a major departure from the previously predicted deficit of 500,000 BOPD. Even though OPEC+ leaders met earlier this month, agreeing to extend thei… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

OPEC to Be Squeezed by U.S. Shale Until Mid-2020s, IEA Says

OPEC to Be Squeezed by U.S. Shale Until Mid-2020s, IEA Says

From Bloomberg OPEC’s loss of market power to what was once its biggest customer will continue until the middle of the next decade as U.S. shale oil thrives. By 2024, the Organization of Petroleum Exporting Countries’ capacity to pump crude will actually shrink because of declines in Iran and Venezuela, according to the International Energy Agency. As rivals grow, the amount of oil the world needs from the cartel each year won’t recover to pre-2016 levels — before OPEC started cutting production — throughout the period. The report may be sobering reading for OPEC, which has capped its production for the past two years to stave off a global glut that would depress prices. Although its cutbacks have mostly achieved those aims, they’ve also invigorated the shale-oil boom in the U.S., helping the country become the world’s biggest crude producer. America’s energy expansion will proceed, accounting for 70 percent of[Read More…]

March 11, 2019 - 12:55 pm Closing Bell Story, Crude Oil News, Energy News, OPEC
The Oil & Gas Story in 2018 was Written by Strong Oil Prices

The Oil & Gas Story in 2018 was Written by Strong Oil Prices

Oil prices above breakeven for three quarters of the year positive for drillers On the whole, 2018 produced good news for U.S. oil and gas companies, at least through the first three quarters of the year. Prices were above breakeven level for the first nine months of 2018, allowing producers to kick drilling plans and capital usage into high gear, boosting production to record levels during the year. A global oil glut that had wreaked havoc on the industry in 2015 and 2016 was declared ‘neutralized’ entering the year, and oil prices above breakeven were in force during most of the year, with WTI sitting above $60 for three quarters, above $65 for two of those quarters. The benchmark U.S. crude oil price exceeded $70 per barrel four times during the year and punched through $75 at the beginning of October. Q1-Q3 2018: Higher oil prices brought liquidity, growth The[Read More…]

$2 Trillion Annual Investment in New Supply is Needed to Meet Energy Demand to 2040: IEA

$2 Trillion Annual Investment in New Supply is Needed to Meet Energy Demand to 2040: IEA

Worldwide, government policy decisions will be prime determinant of world’s energy direction In a new report, the International Energy Agency outlines new scenarios regarding fuels use and supply and demand, saying government policy decisions will determine what happens in the energy space, and that to meet global energy demand, investment in new supply of $2 trillion per year will be required. “Across all regions and fuels, policy choices made by governments will determine the shape of the energy system of the future,” according to the IEA’s latest World Energy Outlook report. IEA’s  World Energy Outlook 2018 details global energy trends and what possible impact they will have on supply and demand, carbon emissions, air pollution, a… Login or click here to subscribe

November 15, 2018 - 2:00 pm Closing Bell Story, International, Oil and Gas 360 Articles, Trade
Source: Arabian Oil and Gas

New IEA Report Outlines What is Coming to MENA Producer Countries

What do you do with a one-trick-pony oil economy that is hiring about 5,000 oil workers, but you have 83 million people under 30 to find jobs for? Any nation’s leadership that has been lulled to sleep by decades of relying on a single successful product for virtually all of its very substantial revenues might be shocked to wake up and find that the world changed. The IEA has published a new report outlining what is coming to producer countries. IEA’s “WEO 2018 Special Report: Outlook for Producer Economies” makes it clear that continuing to rock along maintaining the status quo could mean the oil exporting nations will be looking at a harsh dose of reality in the not-too-distant future. A revenue rollercoaster ride IEA’s report points… Login or click here to subscribe

October 25, 2018 - 5:04 pm Closing Bell Story, Oil and Gas 360 Articles, OPEC
Oil Market, Prices Have Entered the ‘Red Zone’:  IEA Begs OPEC to Open the Taps

Oil Market, Prices Have Entered the ‘Red Zone’: IEA Begs OPEC to Open the Taps

Venezuelan output is in free-fall and Iran’s production is sinking: IEA’s Birol says expensive energy is back and its inflicting damage on global economy From Bloomberg The International Energy Agency made a direct appeal to OPEC and other major oil producers to boost output, warning that high prices are inflicting damage on the global economy. “We should all see the risky situation, the oil markets are entering the red zone,” IEA Executive Director Fatih Birol said in an interview on Tuesday. “Expensive energy is back at a bad time, when the global economy is losing momentum. We really need more oil.” Supply disruptions in Iran and Venezuela have pushed oil to four-year highs Oil prices rallied to a four-year high above $85 a barrel in London earlier this month on concern that U.S. sanctions on Iranian crude, along with chronic supply losses in Venezuela, could lead to a shortage. Traders are[Read More…]

Oil Market Tightening: IEA Chief

Oil Market Tightening: IEA Chief

From Reuters NEW DELHI (Reuters) – Global oil markets could tighten towards the end of this year due to strong demand and uncertainty of production in some oil producing nations, the head of the International Energy Agency said. “Definitely there are some worries that oil markets can tighten towards the end of this year and as major oil importing countries India and other countries need to be ready,” IEA’s Fatih Birol told Reuters on Wednesday after a meeting with India’s Oil Minister Dharmendra Pradhan. He said oil markets could tighten due to “very strong demand growth and a major problem is that Venezuelan production is collapsing.” Venezuelan production has halved in the last two years, he said, adding there was also “fragility of production” in countries including those in the Middle East. Birol on Monday told Reuters that Venezuela’s oil production was expected to slide further after falling by half[Read More…]

August 31, 2018 - 2:41 pm Closing Bell Story, Energy News
World’s Oil Supply “Might be Stretched to the Limit” Due to Production Losses: IEA

World’s Oil Supply “Might be Stretched to the Limit” Due to Production Losses: IEA

From Reuters Oil prices steadied on Thursday after sharp losses the previous session as the International Energy Agency (IEA) said the world’s oil supply cushion “might be stretched to the limit” due to production losses. Benchmark Brent crude oil LCOc1 rose $1.70, or more than 2.3 percent, to a high of $75.10 a barrel before losing almost all its gains to trade at $73.60, up 20 cents, by 1340 GMT. On Wednesday, Brent had slumped $5.46 or 6.9 percent. U.S. light crude CLc1 fell 30 cents to $70.08 a barrel, after losing 5 percent the previous session. “Warnings from the IEA of a potential spare capacity crunch are helping the energy complex … following yesterday’s bloodbath,” said Stephen Brennock, analyst at London brokerage PVM Oil Associates. An announcement by Libya’s National Oil Corp (NOC) that four oil export terminals were reopening, ending a standoff that had shut down most of[Read More…]

IEA World Oil Demand (mb/d = Millions of Barrels per Day), Feb. 2018

World Hungers for Oil: IEA

The International Energy Agency (IEA) released a new Oil Market Report (OMR) today. In its OMR, the IEA said countries across the globe have been steadily consuming more and more oil over the past few years. The IEA said that global oil demand growth for 2018 has increased slightly to 1.4 million barrels per day (mb/d), partly due to an optimistic GDP forecast from the IMF. This is down from 2017’s gain of 1.6 mb/d, but still remains higher than 2013-15’s level of demand. OECD commercial stocks fell in December 2017 by 55.6 million barrels (m/b), the steepest drop since February 2011, to reach 2,851 m/b. In 4Q17, stocks fell sharply by 1.3 mb/d across the OECD. The United States experienced several bouts of extreme winter cold, leading to record draws. Overall, stocks drew by 154 m/b during 2017 and ended the year 52 m/b above the five-year average, the[Read More…]

February 13, 2018 - 5:55 pm Closing Bell Story, International, Oil and Gas 360 Articles
IEA’s Birol Backtracks 2017 Rebalance Prediction

IEA’s Birol Backtracks 2017 Rebalance Prediction

Birol believes rebalance is now coming in 2H of 2018 Back in July—on the U.S.’s Independence Day—Fatih Birol, the chief of the International Energy Agency (IEA) said he believed the oil market would rebalance in the second half of 2017, “but further output increases among key producers such as Nigeria and Libya could hamper this process,” Reuters reported from Birol’s appearances at the World Economic Forum in Davos. “In the current context we see the market rebalancing in the second half of the year. But if production increases in some of the key producers this may change the picture,” Birol told Reuters on the sidelines of an Energy Institute event. “Whatever OPEC does, if the prices go up, there will be a response from shale oil producers,” Birol said. Today, two days prior to the much anticipated OPEC meeting on Nov. 30, Birol pushed out his prediction of a rebalance[Read More…]

November 28, 2017 - 5:23 pm Closing Bell Story, Commodity Pricing, Crude Oil News
IEA Revises Up Forecasts of Global Oil Demand Growth

IEA Revises Up Forecasts of Global Oil Demand Growth

The latest Oil Market Report by IEA suggests that the global demand growth for oil has been revised upwards to 1.6 million BOPD. This number has already included the effects of Hurricanes Irma and Harvey on the U.S. energy demand. Demand up, supply down “Global oil demand grew very strongly year-on-year in 2Q17, by 2.3 mb/d (2.4%). For 2017, we have revised upwards our growth estimate to 1.6 MMBOPD,” the IEA said. “Global oil supply fell by 720 kb/d in August – The first decline in four months cut supply to 97.7 mb/d,” the international OECD-sponsored agency said. The industry has seen a reduction in negative effects from the hurricanes to hit the gulf coast compared to a decade ago, but the region is much more important to the global oil market as the exported volumes from the U.S. continue to increase, meaning the Gulf Coast’s importance will grow, the IEA said. The global oil supply[Read More…]

Non-OPEC Supply Growth will Hold Down Prices: EIA, IEA

Non-OPEC Supply Growth will Hold Down Prices: EIA, IEA

International oil prices are contingent upon both the worldwide growth in oil production and the worldwide growth in oil inventories. Understanding the balance of these movements, and interpreting those movement is undertaken by the Energy Information Agency (EIA) and the International Energy Agency (IEA), in order to better evaluate and predict oil price movements. In the U.S., and across the globe, a glut in oil inventories has inhibited upward price movement, making the growth of oil production and inventories key to oil and gas traders worldwide. EIA’s interpretation In the Energy Information Agency’s Short-Term Energy Outlook, the EIA predicts that inventory draws in Q2 and Q3 of 2017—while moderated by non-OPEC production—may result in the slight increase of oil prices during those months. The agency expects that, as prices creep up, U.S. tight oil production will respond and raise U.S. crude oil supply in 2018. Global inventory is expected to[Read More…]

RBC Examines 3 Paths to Oil Rebalance

RBC Examines 3 Paths to Oil Rebalance

U.S. crude oil stocks at this point in 2017 have dropped below the record highs of 2016. But inventories are still high. So in the face of predicted increasing oil production from shale in 2017, rebalancing inventories will be difficult, if it is even possible. However, a rebalance is still plausible according to an RBC Capital Markets report that identified several possible ways a drawdown of inventories could be in the cards. By the numbers According to the EIA, the current crude oil inventory is over 522.5 million barrels. This is 4% below the 543.4 million barrels in storage at this time last year, but is still 19% more than the five-year average for this point in the year. The present resurgence in drilling activity suggests that U.S. production will soon increase, driving inventories higher. Increased refinery runs are quickest way According to RBC, refinery runs are the primary driver[Read More…]

Natural Gas Ready for Major Gains Over the Next 25 Years: IEA

Natural Gas Ready for Major Gains Over the Next 25 Years: IEA

Lower demand for coal will make natural gas an increasingly important fuel The International Energy Agency (IEA) released its annual World Energy Outlook Wednesday, saying natural gas will play an increasingly important role in the mix of global fuels through to 2040. Renewables will also play a leading role moving forward, but to what extent will depend on how countries implement the Paris Climate Agreement, which President-Elect Donald Trump has threatened to pull out of following his inauguration. Regardless of the uncertainty around renewable energy and the Paris Agreement, natural gas will likely see major gains, said IEA Executive Director Fatih Birol. “Given the economics natural gas can provide for the energy system, whatever policy we have, natural gas always comes out one of the big winners,” Birol said. “We see clear winners for the next 25 years – natural gas but especially wind and solar – replacing the champion of[Read More…]

November 17, 2016 - 6:47 pm Closing Bell Story, Oil and Gas 360 Articles
IEA: Essentially No Oversupply in Second Half of the Year

IEA: Essentially No Oversupply in Second Half of the Year

Supply and demand beginning to cool as oversupply shrinks – IEA, OPEC weigh in The International Energy Agency sees supply and demand coming into balance during the third quarter of the year, according to its August Oil Market Report. From July through September, demand will outpace the supply of crude oil by almost 1 MMBOPD, even as OPEC producers continue to increase output. “Our balances show essentially no oversupply during the second half of the year,” the IEA said in its report Thursday. While the agency sees supply and demand beginning to balance in the third quarter, the IEA believes both will weaken through the remainder of this year and next. In its August release, the IEA reported oil demand growth will slow from 1.4 MMBOPD in 2016 to 1.2 MMBOPD next year, “as underlying support from low oil prices wanes.” While the agency’s 2017 demand outlook is still above[Read More…]

Oil Reports Cast Contradicting Shadows of Oil Market: Oil Price Falls

Oil Reports Cast Contradicting Shadows of Oil Market: Oil Price Falls

In the last two days, three reports have been released with current data and predictions for the oil market moving forward. Yesterday, the Oil Market Reports for July were released from both OPEC and IEA, as well as the crude oil storage report from API. This morning brought the Weekly Petroleum Status Report from EIA. This smorgasbord of data has left the price of oil reeling today, down 3.61%. These reports come about as the oil market is in the most unpredictable position it has been in some time. Supply outages are creeping back online in Canada and Nigeria. The levels of global demand are in question. Oil price has risen to the point where U.S. oil producers are increasing rig counts, Baker Hughes has reported an increase in U.S. active rigs in five of the last six weeks. The Saudi Arabian oil minister is calling for higher prices to[Read More…]

July 13, 2016 - 6:18 pm Analytics, Closing Bell Story, Oil and Gas 360 Articles
Middle East Share of World Oil Production Highest since 1975: IEA

Middle East Share of World Oil Production Highest since 1975: IEA

Middle East Oil will account for Most of the World’s Demand Growth IEA Believes An updated analysis from the International Energy Agency (IEA) has determined that the current oil price environment has boosted the share of oil produced in the Middle East. At 31 million barrels per day, the region now accounts for 35% of global oil supplies, the highest level since 1975, according to data from the IEA. The agency said a $300 billion decline in investments in the oil sector in 2015 and 2016 represents the first consecutive two-year drop in three decades, with North America accounting for about half the drop. “Growth in production from Saudi Arabia, Iraq and Iran, highlights the fact that low-cost producers in the Middle East remain central to oil markets,” the IEA said in a press release. The agency’s conclusion was that “if prices remain at current levels, a significant rebound appears unlikely[Read More…]

July 8, 2016 - 2:34 pm Closing Bell Story, Oil and Gas 360 Articles, OPEC
Oil Surplus Smaller than Expected, but Downward Pressure on Prices Remain – IEA

Oil Surplus Smaller than Expected, but Downward Pressure on Prices Remain – IEA

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 growing demand is expected to help bring the market back into balance in 2017, the agency reported. Despite the bullish outlook, the IEA said the “enormous inventory overhang” which built up since the end of 2014 will be enough to limit a significant increase in price. Global oil supply saw its “first significant drop since early 2013” in May as outages in OPEC and non-OPEC countries removed approximately 800 MBOPD from the market. Wildfires in Canada, along with rebel activity in Nigeria accounted for much of the decline. Total production[Read More…]