IEA says hopes of higher, stable oil prices could be dashed quickly

IEA says hopes of higher, stable oil prices could be dashed quickly

IEA says hopes of higher, stable oil prices could be dashed quickly

The International Energy Agency's forecast on demand have been abysmal and now once again they are low balling demand at least compared to OPEC which says that said oil use would grow faster than previously thought due to a stronger-than-expected world economy.

A pump jack is seen at sunrise near Bakersfield, California October 14, 2014.

Paris-based IEA predicts that US shale oil producers will boost their output by 8 million barrels a day between 2010 and 2025, an increase that "would match the highest sustained period of oil output growth by a single country in the history of oil markets" - rivaling even the massive increase posted by Saudi Arabia between 1966 and 1981. The effort, which started in January, is credited with pulling the price of oil back from the sub-$30 per barrel range last year to two-year highs in recent sessions.

"However, if these problems do prove to be temporary, a fresh look at the fundamentals confirms the view we expressed last month that the market balance in 2018 does not look as tight as some would like, and there is not in fact a "new normal".

On the other hand OPEC demand for their oil is up to 33.42 million barrels per day (bpd) of OPEC crude next year, an increase of 360,000 bpd from its previous forecast and the fourth consecutive monthly increase in the projection from its first estimate made in July.

IEA said it had cut its longer-term oil price projections from past year, partly because of the falling cost of both renewable and conventional sources of energy, the worldwide push to tackle climate change and improve air quality and the boom in United States shale oil and gas output.

Oil producers who signed up to a landmark production cut agreement mostly stuck to the deal, with the compliance rate at 96 percent in October, and 87 percent for the year to date, the IEA also said.

The biggest threat to market balances, aside from a tempering in demand, is the growth in supply from non-OPEC nations.

"Using a scenario whereby current levels of OPEC production are maintained, the oil market faces a hard challenge in 1Q18 with supply expected to exceed demand by 600,000 bpd followed by another, smaller, surplus of 200,000 bpd in 2Q18", the agency said.

However, even rapid growth in the electric vehicle fleet would be unlikely to have a substantial impact on oil consumption for passenger transport until the mid-2020s, it said.

Growth is expected to accelerate to 1.4 million bpd in the last three months of this year, even though mild temperatures and rising prices will restrain demand, the IEA said.

Notícias recomendadas

  • Jon Stewart 'angry' with Louis CK over scandal

    Jon Stewart 'angry' with Louis CK over scandal

    As the interview came to a close, Lauer asked if Stewart had talked to C.K. since last week's New York Times story broke. So to do it was an act of bravery in and of itself.

    Death row inmate gets pillow to help him breathe during execution

    James McWeeney noted there were no objective findings such as increased pulse rate or breathing to corroborate Campbell's anxiety. He was paroled in 1992 and, in 1997, he overpowered a Franklin County sheriff's deputy while in a wheelchair.

    Boston Scientific Corp (BSX) Shares Hovering Above Chikou

    The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website . Janus Henderson Group PLC lifted its stake in shares of Boston Scientific Corporation by 22,491.6% in the second quarter.
  • Kate Middleton's Uncle Admits To Punching Wife, Could Face Jail Time!

    Kate Middleton's Uncle Admits To Punching Wife, Could Face Jail Time!

    Ms Shilton said: 'She (Mrs Goldsmith) then becomes upset, starts crying and uses some railings to assist her '. When he challenged Goldsmith over his actions, the entrepreneur allegedly became aggressive towards him.
    New Zealand Prime Minister: Barong scratchy, 'quite starched'

    New Zealand Prime Minister: Barong scratchy, 'quite starched'

    The Philippines and New Zealand signed an amendment to extend geothermal energy cooperation . This, as it committed to spur the development of the country's geothermal output.

    Aronimink to host 2027 PGA Championship, 2020 Women's PGA

    The idea of holding majors at the club became more practical after Aronimink embarked on an major course upgrade previous year . Fall is usually a quiet time on the golf calendar, but the PGA of America has been making plenty of noise this November.
  • United Nations rights chief: European Union policy on migrants in Libya 'inhuman

    He called for the creation of domestic legal measures and the decriminalisation of irregular migration to ensure the protection of migrants' human rights.
    Jennie McAlpine confirmed for I'm a Celebrity… Get Me Out of Here!

    Jennie McAlpine confirmed for I'm a Celebrity… Get Me Out of Here!

    What happens in the Jungle stays in the Jungle apart from all the people watching it. Although, he added: "A Jungle fling?" "I am coming into this single", he said.
    Jason Aldean speaks out in first interview since Las Vegas shooting

    Jason Aldean speaks out in first interview since Las Vegas shooting

    Everybody was scrambling; you just didn't know what was going on... You know? And obviously nobody else out there had either. So I was like, alright well they must have got it fixed.
  • Le PSG en clair et en gratuit face à Troyes

    Le PSG en clair et en gratuit face à Troyes

    Mercredi 29 novembre à 21h, la chaîne C8 diffusera gratuitement la rencontre PSG - Troyes, également co-diffusée sur Canal +. Cet après-midi, le Groupe Canal + a annoncé la diffusion en clair sur C8 d'un match de Ligue 1 Conforama et de TOP 14.

    Moody Lynn & Lieberson LLC Purchases New Holdings in Heico Corporation (HEI)

    Dupont Capital Management Corp's holdings in Heico Corporation were worth $648,000 at the end of the most recent reporting period. The aerospace company reported $0.53 earnings per share for the quarter, topping analysts' consensus estimates of $0.52 by $0.01.

    Man shot dead by Baton Rouge police officer: State Police

    Moore, III told reporters the victim in Monday night's officer-involved shooting was not handcuffed at the time he was shot. Louisiana State Police spokesman Trooper Bryan Lee says the officer suffered minor injuries in the Monday night shooting.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.