OPEC producers pumped more oil in November than in any month since late 2008, some 31.7 million barrels per day.
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While its policy is hitting rivals, triggering the steepest drop in non-OPEC supply since 1992, world oil inventories will likely swell further once Iran restores exports on the completion of a deal to lift sanctions, it said. Republication or redistribution of content provided by EconoTimes is expressly prohibited without the prior written consent of EconoTimes, except for personal and non-commercial use.
Global oil supply, too, was unrelenting, hitting almost 96 million barrels per day.
Oil prices have tumbled over the last 18 months, from a high of $114 last June to their current levels on a glut in supply outpacing demand. In November, OPEC production rose by 230,000 barrels per day from the previous month to an average of 31.70 million barrels per day, according to OPEC monthly oil market report released Thursday.
But OPEC also increased its 2015 non-OPEC supply growth forecast by 280,000 bpd, citing upward revisions to output from the United States, Brazil, Russia and the UK, among other countries.
“The forecast remains incredibly warm for the US That’s a large drag on demand and means less demand for distillates and more for export, which drags down the rest of the world as well”. He said: “If you look back over the last 25 years, Brent crude oil has made its major highs and lows in this ($41 to $35 a barrel) area”.
“There is evidence the Saudi-led strategy is starting to work”, the IEA said, referring to the producer group’s decision to maintain high output to safeguard market share.
“In particular, we see potential for a temporary undershoot by prices to 2008 financial crisis lows around $36 per barrel for Brent”, BMI said on Thursday.
Gasoline’s premium to heating oil widened as the heating oil contract HOc1 slumped 6 percent to near 7-year lows while gasoline RBc1 settled flat.
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As companies make further spending cuts in reaction to sub-$50/bbl oil, the impact on supplies – both from non-OPEC and OPEC – will be even more pronounced in the longer term. Technical support at earlier lows has been lost time and again in the last week, suggesting that the market is ignoring those levels.
