Arab Today, arab today iea ‘enormous’ inventories to keep lid on oil price
Last Updated : GMT 12:32:14
Arab Today, arab today
Arab Today, arab today

IEA: ‘Enormous’ inventories to keep lid on oil price

Arab Today, arab today

Arab Today, arab today IEA: ‘Enormous’ inventories to keep lid on oil price

IEA: ‘Enormous’ inventories to keep lid on oil price
Paris - Arab Today

A huge overhang in oil stocks lingering across the world will keep a cap on any further oil price rises, the IEA said, even as supply and demand move toward balance by the end of the year.

Global demand for oil is steadily rising thanks to solid economic growth, and supply has been curbed by unexpected production cuts due to wildfires in Canada and rebel attacks in Nigeria, as well as falling US shale production, the International Energy Agency said in its monthly oil market report.
These factors recently pushed the oil price above the key level of $50 as supply came closer to matching demand, a process known as rebalancing which the IEA expects to be fully in place in the second half of this year.
But while market forces play out to help the oil price to continue climbing from its low point of close to $25 at the start of the year, there are still large oil inventories waiting to feed into the market, causing a supply glut that is likely to keep a lid on gains for some time.
“There is an enormous inventory overhang to clear,” the IEA said. 
“This is likely to dampen prospects of a significant increase in oil prices.”
Worries about big stocks have caused the oil price to fall back from this year’s high of around $51 reached early last month, the agency said, echoing Monday’s report from the OPEC oil cartel which said that “speculators became somewhat less interested in long positions” because of the overhang in inventories.
The benchmark Brent crude contract lost ground Tuesday, slipping to $49.65 in early afternoon European business while US’s WTI contract eased to $48.19.
“Oil prices are due a short-term breather given the recent run up, as the market takes stock of broader macroeconomic developments,” analysts at Energy Aspects said.
The IEA said there is a “huge number of moving parts” in the current oil market environment, making accurate predictions hazardous.
On the supply side, these involve a surprisingly strong return of Iran to the oil market after Western countries lifted sanctions which had been imposed over Tehran’s nuclear program, and questions over the timing of any full resumption of production in Nigeria once Niger Delta security issues are resolved.
Iran has emerged as “OPEC’s fastest source of supply growth this year,” pumping oil at its highest level in five years, the IEA said.
OPEC, meanwhile, has done little to correct the market’s imbalance, failing earlier this month to agree on any production ceiling at a key meeting and deciding instead to keep oil gushing as the moderate recovery in the oil price eased pressure to limit output.
Kingpin Saudi Arabia said at the time that the cartel was “very satisfied” with the market.
This stance had at least “provided some clarity to the market,” the IEA observed in its report.
On the demand side, the IEA said relatively weak oil prices will bring more buyers into the market, leading the agency to raise its forecast for 2016 demand growth to 1.3 million barrels per day (mbpd) from a previous 1.2 mb/d estimate.
Countries outside the OECD club of highly-developed nations will provide the bulk of fresh demand, with India the world’s growth leader, the IEA said.
Korea and China are also projected to see strong demand.
Following weakness since late last year, demand in the US has picked up in recent months and will make a “vigorous” contribution to demand growth, it said.
Worldwide oil demand is likely to continue to grow by 1.3 mb/d into next year, the IEA said, in its first estimate for 2017.

Source: Arab News

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today iea ‘enormous’ inventories to keep lid on oil price Arab Today, arab today iea ‘enormous’ inventories to keep lid on oil price

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 05:15 2017 Tuesday ,21 February

Gold firms as markets await Trump tax plans

GMT 04:58 2017 Tuesday ,21 February

EU, IMF in ‘common position’ on Greece crisis

GMT 14:57 2017 Monday ,20 February

A giant initial public offering on track

GMT 14:50 2017 Monday ,20 February

Energy Market Research

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday