-
Tips for becoming a good boxer - November 6, 2020
-
7 expert tips for making your hens night a memorable one - November 6, 2020
-
5 reasons to host your Christmas party on a cruise boat - November 6, 2020
-
What to do when you’re charged with a crime - November 6, 2020
-
Should you get one or multiple dogs? Here’s all you need to know - November 3, 2020
-
A Guide: How to Build Your Very Own Magic Mirror - February 14, 2019
-
Our Top Inspirational Baseball Stars - November 24, 2018
-
Five Tech Tools That Will Help You Turn Your Blog into a Business - November 24, 2018
-
How to Indulge on Vacation without Expanding Your Waist - November 9, 2018
-
5 Strategies for Businesses to Appeal to Today’s Increasingly Mobile-Crazed Customers - November 9, 2018
Oil demand to slow in 2017, IEA says
Prices of oil retreated slightly after reports of a new OPEC meeting sparked a rally.
Advertisement
OIL: Crude oil prices were moving higher after the International Energy Agency said it expects that supply and demand for oil will be more in balance the rest of this year.
Oil prices fell Wednesday after an unseasonal growth in crude stockpiles overshadowed the second-biggest weekly draw in USA gasoline this summer.
The Paris-based think tank lowered its forecast for oil demand growth for next year, saying the rebound in oil prices from their depths at the start of the year had slowed the market’s momentum. US stockpiles of crude oil and refined products rose by 2.5 million barrels in the week ended August 5 to 1.39 billion barrels.
In emailed remarks on EIA data, Anthony Starkey, a market analyst for S&P Global Platts, said there are signs of market conditions improving, but headwinds remain. USA oil prices also rose, increasing 1.82% to $42.47 on Thursday morning.
The IEA said global oil supply rose by about 800,000 bpd in July as both production from members and non-members of the Organization of the Petroleum Exporting Countries (OPEC) increased. For 2017, global oil demand is expected to grow at the same level anticipated last month; that is, going up by 1.15 mb/d from 2016 levels.
The expert noted that unless the big producers, particularly Iran and Saudi Arabia, reach a compromise and support a proposal on production freezing, this latest effort will be no more successful than previous attempts made earlier in the year.
In its previous report in July, OPEC said it expected the oil market balancing later this year, leaving its forecasts largely unchanged.
International Brent crude futures were at $43.72 a barrel, down 33c, or 0.8%.
Distillate fuel inventories fell by 2 million barrels but are still near the upper limit of the average range for this time of year, according to the EIA. OPEC report has also taken its toll that showed record oil production of 10.67 million barrels by Saudi Arabia.
It said that this could ultimately be supportive of the oil price.
Advertisement
The forecast for slower growth comes as the oil market is still oversupplied, with the IEA noting that “the massive overhang of [oil] stocks is also keeping a lid on prices”.