Global Oil Market
Posted: Fri Oct 12, 2018 5:28 pm
OPEC revises down demand for its crude. Rising U.S. production could give OPEC more breathing room. “OPEC revised its forecast for the call on OPEC in 2019 down by 270,000 to 31.8 million barrels per day due to the steep rise in non-OPEC supply. By contrast, OPEC production rose to 32.8 million barrels per day in September, despite falls in Iran and Venezuela,” Commerzbank wrote in a note. “Thus OPEC is currently producing roughly 1 million barrels per day more than will be needed next year, creating a substantial cushion for any further outages in Iran and Venezuela.” < The problem is that there is little are no spare capacity remaining in the world. - Dan.
IEA: Oil market demand to hit 100,000,000 b/d. In its latest report, the IEA said that both supply and demand are closing in on 100 million barrels per day for the first time ever. The agency also said that there is no sign that peak demand is at all close as the drivers of demand growth are “very powerful.”
IEA: Oil market “under strain.” In the short run, the IEA said that “expensive energy is back,” and it could threaten economic growth. Rising production from Saudi Arabia over the last few months leaves the market “adequately supplied for now,” the IEA said, although because the gains have come at the expense of spare capacity, the market is now suffering from some strain. Meanwhile, the IEA also downgraded its oil demand forecast for 2019 from 1.4 to 1.3 million barrels per day, citing emerging market weakness.
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MY TAKE: We are in the 2nd and final "Shoulder Period" of the year for oil demand. In a few weeks, refinery maintenance season will be over and demand for crude oil will soar again.
IEA: Oil market demand to hit 100,000,000 b/d. In its latest report, the IEA said that both supply and demand are closing in on 100 million barrels per day for the first time ever. The agency also said that there is no sign that peak demand is at all close as the drivers of demand growth are “very powerful.”
IEA: Oil market “under strain.” In the short run, the IEA said that “expensive energy is back,” and it could threaten economic growth. Rising production from Saudi Arabia over the last few months leaves the market “adequately supplied for now,” the IEA said, although because the gains have come at the expense of spare capacity, the market is now suffering from some strain. Meanwhile, the IEA also downgraded its oil demand forecast for 2019 from 1.4 to 1.3 million barrels per day, citing emerging market weakness.
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MY TAKE: We are in the 2nd and final "Shoulder Period" of the year for oil demand. In a few weeks, refinery maintenance season will be over and demand for crude oil will soar again.