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International Energy: Oil drop may continue after an oversupply
Saturday, 11 July, 2015
The International Energy Agency said that “it is expected that oil prices will come under further pressure due to the decline in global demand and the growing glut of crude supply while restoring market balance process may continue until next year.
The agency said it “expects a slowdown in global oil demand growth next year to 1.2 million barrels per day from 1.4 million this year, far less than needed to balance the supply of the growing supply from the Organization of Petroleum Exporting Countries level (OPEC) and beyond.”
The IEA said in its monthly report “The market probably did not reach the lows after” and “restore the balance process that began when the oil markets began the first wave of landing prices by 60 percent a year ago, did not end until now indicate developments recently that progress It will continue until 2016. ”
“The oil market has undergone major glut in supply in the second quarter of 2015 and is still taking place even today. It is also clear that the continuation of the market’s capacity to absorb an oversupply is unlikely. Wild storage space has become limited. The same applies on the tanker fleet. ”
It came the global supply glut as a result of a significant rise in US oil supplies to support production of the rock revolution and OPEC’s decision not to cut production as the organization preferred to protect its market share in the face of its competitors. ”
However, the prices drop to between $ 50 and $ 60 a barrel in recent months, from $ 115 a year ago, has yet to affect the North American supply. ”
She said that “the total supply from non-OPEC tends to slow it seems to grow by one million barrels per day in 2015 and remain stable in 2016, after rising 2.4 million barrels per day in 2014.”
Among other negative indicators Energy Agency said that global oil demand growth peaked apparently in the first quarter of 2015 at 1.8 million barrels per day and will continue to decline the rest of this year and for next year. ”
This means that demand for OPEC oil will reach 30.3 million barrels a day next year, up one million barrels per day for 2015 but it is still at least 1.4 million barrels per day from the current production level of the organization.
The IEA said “the organization does not see a slowdown … On the contrary, the main producers in the Middle East is pumped at record rates and continue to improve the prospects for Iraqi production capacity growth.”
The agency said that “OPEC’s oil production of 340 thousand barrels in June rose a day to 31.7 million barrels per day, its highest level in three years, which she put down mainly to record production in Iraq, Saudi Arabia and the UAE.”
She added that “the Saudi oil supply rose by 50 thousand barrels per day to a record high of 10.35 million barrels per day in June, while Iraq’s production last month increased 270 thousand barrels per day to its highest level ever at 4.12 million barrels Aumia.anthy
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Saturday, 11 July, 2015
The International Energy Agency said that “it is expected that oil prices will come under further pressure due to the decline in global demand and the growing glut of crude supply while restoring market balance process may continue until next year.
The agency said it “expects a slowdown in global oil demand growth next year to 1.2 million barrels per day from 1.4 million this year, far less than needed to balance the supply of the growing supply from the Organization of Petroleum Exporting Countries level (OPEC) and beyond.”
The IEA said in its monthly report “The market probably did not reach the lows after” and “restore the balance process that began when the oil markets began the first wave of landing prices by 60 percent a year ago, did not end until now indicate developments recently that progress It will continue until 2016. ”
“The oil market has undergone major glut in supply in the second quarter of 2015 and is still taking place even today. It is also clear that the continuation of the market’s capacity to absorb an oversupply is unlikely. Wild storage space has become limited. The same applies on the tanker fleet. ”
It came the global supply glut as a result of a significant rise in US oil supplies to support production of the rock revolution and OPEC’s decision not to cut production as the organization preferred to protect its market share in the face of its competitors. ”
However, the prices drop to between $ 50 and $ 60 a barrel in recent months, from $ 115 a year ago, has yet to affect the North American supply. ”
She said that “the total supply from non-OPEC tends to slow it seems to grow by one million barrels per day in 2015 and remain stable in 2016, after rising 2.4 million barrels per day in 2014.”
Among other negative indicators Energy Agency said that global oil demand growth peaked apparently in the first quarter of 2015 at 1.8 million barrels per day and will continue to decline the rest of this year and for next year. ”
This means that demand for OPEC oil will reach 30.3 million barrels a day next year, up one million barrels per day for 2015 but it is still at least 1.4 million barrels per day from the current production level of the organization.
The IEA said “the organization does not see a slowdown … On the contrary, the main producers in the Middle East is pumped at record rates and continue to improve the prospects for Iraqi production capacity growth.”
The agency said that “OPEC’s oil production of 340 thousand barrels in June rose a day to 31.7 million barrels per day, its highest level in three years, which she put down mainly to record production in Iraq, Saudi Arabia and the UAE.”
She added that “the Saudi oil supply rose by 50 thousand barrels per day to a record high of 10.35 million barrels per day in June, while Iraq’s production last month increased 270 thousand barrels per day to its highest level ever at 4.12 million barrels Aumia.anthy
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