Elsewhere in the report, OPEC downsized its non-OPEC 2016 output estimates to an average of 57.14 million bpd, due to declining USA shale-oil production: “This downward trend should accelerate in coming months, given various factors, mainly low oil prices and lower drilling activities”.
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“We are in favor of, not a cut, but of countries not increasing their output, so that demand, which is growing year-by-year, is covered by the oversupply that exists in the market”, Novak said, according to a report by the Prime news agency. The report highlighted that OPEC production increased by 230,100 bpd (barrels per day) to 31.7 MMbpd (million barrels per day) in November 2015, as compared to production in October 2015.
The IEA projected that the rate of growth in global demand for crude would slow to 1.2m barrels per day in 2016 from the 1.8 mb/d rise seen this year. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Producers are counting on global consumers to ratchet up demand for crude as they take advantage of low retail prices for gasoline and diesel.
Brent futures slipped below $US38 a barrel for the first time since December 2008 while WTI fell below $US35 a barrel and is rapidly approaching its GFC low of $US32.40.
USA spot natural gas prices have fallen below $2 per million British thermal units for the first time on record this week and prices are down 46 percent this year, down by half since mid-2014 when the oil rout began, and 84 percent lower than their 2008 peak.
Markets have reacted to Friday’s IEA report by knocking about 1.5% off the price of benchmark West Texas Intermediate (WTI), now trading at around $36.22 after closing at $36.76 on Thursday.
Oil futures extended their tumble with little pause yesterday, with crude prices hitting their worst levels since the 2008/9 credit crunch, after the International Energy Agency (IEA) warned that global oversupply could worsen next year.
This collaboration would also include an agreement that would enable Saudi Aramco to export its crude oil to the Cilacap refinery. For 2016 OPEC expects an increase of 1.25 million barrels per day, unchanged from last month s forecast, to 94.13 million.
The prospect of higher rates boosts the greenback, which in turn makes dollar-priced crude more expensive for buyers using weaker currencies. Oil prices have tumbled over the last 18 months, from a high of United States dollars 114 last June to their current levels on a glut in supply outpacing demand.
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He also said the weekly drop of 3.6 million barrels in USA crude stocks announced by the government on Wednesday was seen as refiner de-stocking before the end of the US tax year.
