Global demand for crude oil is expected to grow at a slower rate in 2017 than this year, following the International Monetary Fund’s (IMF) revision to the global economic outlook due to Britain voting in June to leave the European Union (EU), Kallanish Energy learns. “The reality is the market continues to be oversupplied, with [a] really big increase in Saudi output last month”.
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Futures increased 0.2 per cent in NY, bringing the weekly gain to 4.3 per cent. Talks with oil producers in Algiers next month could include action to stabilize the market, Saudi Arabia’s energy minister said, according to Reuters.
Growth in demand this year is estimated at 1.4 million bpd. The country – the world’s largest exporter of oil – had walked away from a previous effort among OPEC to limit oil production in April.
The August edition of the Oil Market Report, one of the most watched monthly releases in the oil industry, argues that growth in demand has slowed recently, particularly in India, China, and the U.S., and that this was a major contributor to the fall in oil prices in the past month or so. Although the reduction in stock should help achieve a bigger balance in the crude market, IEA is saying that it will take some time for this to happen, with stockpiles now standing at record levels.
NEW YORK-Oil prices traded near a three-week intraday high Friday, one day after Saudi Arabia said it would work with other oil producers to stabilize prices.
The surge in oil prices (and good results from leading USA retailers) saw Wall Street rise, helped the futures market on the ASX200 to a 33 point gain, and left the Aussie dollar around 77 U.S. cents this morning.
Earlier this week, oil prices fell while the Department of Energy’s weekly petroleum status report showed inventories rose more than analyst expectations.
WTI (West Texas Intermediate) crude oil futures contracts for September delivery fell by 2.5% and closed at $41.71 per barrel on August 10, 2016.
Increased production amid a persistent price rout suggests the heavyweights inside the group won’t be keen on a collective production freeze when they meet at an informal gathering next month on the sidelines of an energy conference in Algeria.
Brent futures rose US$1.49 to US$45.54 a barrel, a 3.4 per cent gain, by 11:19 a.m. EST.
Oil prices fell on Thursday as a build in USA crude inventories and record Saudi Arabian production reinforced fears of a large global supply overhang.
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Saudi Arabia has said it pumped a record 10.67 million barrels per day (bpd) of crude oil in July.
