Home
IEA: oil supply glut will continue in 2016
October 13, 2015 2 0
London
She said the International Energy Agency, said on Tuesday that oversupply in the oil market will continue in 2016 with a slower pace of demand from the highest level in five years and maintain the growth of the major producers in OPEC output to near record levels.
And it predicted the agency that advises industrialized nations on energy policy that "World oil demand will rise by 1.21 million barrels per day in 2016, down about 150 thousand barrels from its forecast in the previous month."
Paris-based agency said "It is likely that the glut in the market remain through 2016 as a result of expected slowdown in demand growth next year and expectations of the market entry of additional Iranian production - in the case of ease international sanctions imposed on Iran."
He led the fall in oil prices, which little more than $ 50 because of an oversupply to reduce expectations for Agency supplies from non-OPEC countries such as the United States.
The agency followed "is expected to shrink the total non-OPEC production by about half a million barrels per day, while reducing spending on upstream activities by more than 20 percent what affect the new projects and production based on both."
But the decline is not great, as the agency forecast last month and raised Agency expectations supplies from outside OPEC next year a little bit. But the agency reduced its forecast for demand for OPEC crude in 2016 by 200 thousand barrels per day to 31.1 million barrels.
The agency continued OPEC supply has increased 90 thousand barrels a day in September to 31.72 million barrels and is expected to remain high production.
In 2014, OPEC abandoned led by Saudi Arabia about the old policy designed to support prices through production cuts, preferring to defend its market share against the producers bear the highest cost. The agency says there are no signs of changing this path.
She added, "While Riyadh does not show any intention to remember to give up the defense of the production volume and not price policy and while Iraq is struggling to keep the current record levels at least it seems that OPEC supplies Sthom about 31.5 million barrels per day in the coming months."
[You must be registered and logged in to see this link.]
