Finance News: OPEC Forecasts 1.3% Oil Demand Growth Next Year

IEA raises forecast for global oil demand this year

Benchmark Brent crude was below $48 a barrel on Thursday. Barclays also cut its 2017 and 2018 Brent forecasts to $52 a barrel for both years from $55 and $57 respectively.

WTI light sweet crude oil was down 30 cents at $45.19 a barrel.

While the oil production benchmark in the budget was 2.2 million barrels per day (mbpd), Nigeria is now producing about 1.7mbpd of oil without condensate, and was still within the price band of $42.50 per barrel which the budget has. Demand next year is expected to rise 1.4 million bpd to 99.4 million bpd.

Image: IEA highlighted a stronger outlook for global oil demand in its monthly report.

Despite the ongoing supply overhang, there are signs of a gradual reduction in the global glut.

Many traders and analysts say most of the agreement's benefits are being reaped by US producers, who are flooding the market. In such a case a deeper cut might pressure prices further instead of supporting them.

There was more encouraging evidence surrounding oil demand.

Crude oil prices reached their lowest year-to-date levels in late June.

Libya and Nigeria, which were spared from supply cuts because they are recovering from conflict, also opened the taps. Even a fresh agreement in May, between the OPEC and participating non-OPEC producers, failed to lift price.

Dalian Wanda sells majority stake to rival Sunac China for $9.3bn
Four years later, it snapped up Hollywood studio Legendary Entertainment for $3.5 billion. It is thought that the deal will go towards reducing Wanda's commercial debt pile.

Given Russia's cooperation and the support of non-OPEC producers, Mr. Kachikwu said, the dialogue must be sustained to maintain the price level, which has remained stable in the last one year. The meeting will take place on July 24 in Russian Federation.

OPEC said that they expect the U.S. to bring in the biggest non-OPEC supply gain next year, even though inflation rate and a cut in well output may limit shale oil activity.

EIA forecasts total USA crude oil production to average 9.3 million b/d in 2017, up 0.5 million b/d from 2016. Its current output is around 1.7 million barrels a day, excluding condensates, Kachikwu said. Since the shale revolution through 2000s, US producers reached a production level that took the country from a net importer to a net exporter.

However, market watchers should keep a careful eye on the numbers, because Libya and Nigeria may not actually be required to remove almost as much oil from the market as might be assumed. Although the EIA reported drawdowns in inventories, it also reported a rebound in production figures, dashing hopes that output was on the decline.

Thursday's move puts USA oil on course for a four-session winning streak and 13 sessions of gains in the last 15.

On Tuesday, the American Petroleum Institute (API) noted that US crude oil inventories were down by 8.1 million barrels, bringing the stockpiles to 495.6 million barrels, a number which may indicate that the current supply gut is beginning to recede.

By the IEA's estimate, it's not just three members undermining OPEC's efforts. For all of 2017, total demand is now forecast at 98 million barrels a day, up by 1.4 million barrels a day compared to 2016.

In the past six years, when oil prices dropped, oil producers kept scaling up extraction to increase their market share, with the objective of obtaining higher profits once price rebounded. While further upside could be expected in the short term amid the speculations of a cut in U.S production, gains may still be limited by the firm oversupply dynamics. "We all agreed that we should continue these meetings", he added.

Related News:

  • John Oliver Joins Jon Favreau's Live-Action 'The Lion King' As Zazu

    John Oliver Joins Jon Favreau's Live-Action 'The Lion King' As Zazu

    Recently it was revealed that Seth Rogen and Billy Eichner were cast to play the comedy duo Timon and Pumbaa . It will follow Disney's roaringly successful live-action take on " The Jungle Book " from previous year .
    Apparent blast damages US Air Force recruiting center in Oklahoma

    Apparent blast damages US Air Force recruiting center in Oklahoma

    The extent of the damage is still unknown, but images from the aftermath show the blast twisted and opened the office's doors. ATF Special Agent Meredith Davis says the blast is being investigated as a possible act of domestic terrorism.
    Overwatch's New Lore Update Teases Doomfist's Arrival

    Overwatch's New Lore Update Teases Doomfist's Arrival

    However, the terrorist group known as Talon managed to free Akande after a surprise attack seemingly launched by Reaper. Ogundimu is believed to be aligned with the villains of Overwatch , but could also take on traits of an anti-hero.
  • Hyperloop One tests its full-scale system for the first time

    Hyperloop One tests its full-scale system for the first time

    And, of course, convincing skeptical transportation planners that this is a better solution than tried-and-true high-speed rail. Just last month it unveiled plans for a London to Edinburgh route that would reach its destination in just 50 minutes.
    Trump 'absolutely' still wants Mexico to pay for border 'wall'

    Trump 'absolutely' still wants Mexico to pay for border 'wall'

    The two leaders have since spoken by phone, and a series of high-level meetings have eased the tension. Some Democrats have said outlays for the wall will be a dealbreaker in future budget talks.
    Microsoft to Cut 3000 Jobs, Mostly From Sales Team

    Microsoft to Cut 3000 Jobs, Mostly From Sales Team

    The company today acknowledged the move, reported last week by the Puget Sound Business Journal and confirmed today by CNBC . The Redmond-based giant had cut 2 ,850 people from its smartphone and sales teams back in July past year .
  • No Health Care Deal 'Would be Very Bad'

    No Health Care Deal 'Would be Very Bad'

    The defendants include 115 doctors, nurses, and other licensed medical professionals. And even obvious fixes can be hard to make .
    Samsung Galaxy J7 Max vs. OnePlus 5

    Samsung Galaxy J7 Max vs. OnePlus 5

    Hence, Samsung On Max looks like a smartphone which has a high-performance camera and quick sharing and payment features. South Korean smartphone maker Samsung has launched the Galaxy On Max photography-centric mid-level phone in India.
    More records for Federer but no match point glory

    More records for Federer but no match point glory

    And seven-time champ Fed said: "That's five first- round withdrawals so far and the question is should they have started at all?" But Williams is taking the rest of the year off because she is pregnant, making way for the runner-up to take her spot.
  • Celtics trade Avery Bradley to Pistons

    Celtics trade Avery Bradley to Pistons

    Also, it allows President Stan Van Gundy to experiment with younger talent, like Stanley Johnson and Luke Kennard . The Pistons relied heavily on the trio of Morris, Tobias Harris and Jon Leuer at forward last season.
    Trump to European Leaders: Look at U.S.  as Energy Exporter

    Trump to European Leaders: Look at U.S. as Energy Exporter

    The right-wing populist government of Poland has undertaken many actions that have been roundly condemned throughout the world. As President Trump shakes Polish President Andrzej Duda's hand, Kornhauser-Duda can be seen looking at Melania .
    Economy Watch: More Americans Traveling for July 4 Than Ever

    Economy Watch: More Americans Traveling for July 4 Than Ever

    OPEC members in May agreed to extend those production caps another nine months, but disappointed investors who wanted deeper cuts. According to AAA , the average price for a gallon of gas in Virginia is nine cents cheaper than this time a year ago .


Most liked

FDA Committee Votes in Favor of B-Cell Acute Lymphoblastic Leukemia Drug
By modifying immune cell DNA, this method could, in theory, lead to other cancers - a longtime concern for gene therapy. In a test conducted, gene therapy results exceeded chemotherapy, and even newer types of cancer medicines.

At Least 16 Dead in Marine Aircraft Crash in Mississippi
Their unit is part of Marine Corps Forces, Special Operations Command. Many expressed their condolences after the crash . We lost some of our best yesterday".

Tesla Made Elon Musk a Lot of Money Last Year
What engines can I choose from? Faster models will also be available, but they'll all likely use the same basic electric system. And build it did, with 325,000 signing up to buy the vehicle within the first week of pre-orders opening a year ago .

CBI and ED 'captive puppets' of BJP-led NDA government: Congress
In the same year, the hotels were transferred to the Indian Railway Catering and Tourism Corporation (IRCTC). "No wrong was done in the tendering, this is a BJP conspiracy".

Gender-Reveal Party Interrupted By Fatal Shooting In Ohio
Based on 911 calls, it appears that two hooded men entered the home and opened fire before fleeing. Some of the victims are children, a Colerain Township police spokesman told WLWT News 5 .

Chelsea will unveil Fernando Llorente as Diego Costa replacement very soon - bookies
The Blues forward has apparently already bid farewell to his teammates as he nears ever closer to a reunion with his former Club.

Toxic Compounds May Sterilize Martian Soil
So they exposed test tubes of a common bacteria, Bacillus subtilis , to conditions similar to ones they might encounter on Mars . They had a pretty generous prerequisite for the bacteria to be considered viable - anything more than zero cells that survived.

Opioid perscriptions have dropped by double digits, CDC says
Nationally, some numbers are encouraging: The CDC found prescription numbers peaked in 2010 and decreased each year since. However, prescribing practices are widely inconsistent and patients receive different care depending on where they live.

Wimbledon 2017: Victoria Azarenka heaps praise on "great player" Heather Watson
Great Britain's number one saw success in the second round to progress to the third for the first time in her career. It's always going to change. "I felt that I had a really good start to the match".

Arab states disappointed over Qatar's reply to demands
Adel al-Jubeir said that political and economic boycott will remain in force until Qatar changes its policies "for the better". A 13-point list of demands was issued on June 22, giving Qatar 10 days to comply.

PM prepares for G20 summit
German authorities are bracing for trouble in Hamburg as they are anxious that the protests could turn violent. The two leaders have also clashed over Trump's decision to withdraw from the Paris Climate Agreement.

Firefighters Hurt Responding to Over 100 Calls for Fireworks Fires
The fire started in a palm tree and spread to other trees and two houses, officials said. It is the likely cause of the fire, but a fire investigator will determine for sure.

Trump jets off to Europe for G-20, face-to-face with Putin
Asked, as he left the White House, what he would do about North Korea, Trump said only: "We're going to do very well". Kaczynski and Prime Minister Viktor Orban of Hungary, who has been similarly criticized for a light authoritarianism.

Chelsea's Tammy Abraham Joins Swansea On Loan
And the striker is now set to continue his development in the top flight with Swansea as he closes in on a season-long loan . I know it was a hard season for them at times, but you could see that they always try and play nice football.

Trump discusses concern over Qatar dispute with Gulf, Arab states in calls
Qatar on Thursday said the list contained some demands impossible to meet because the underlying accusation was untrue. Qatar handed its response to Kuwait on Monday but nothing has yet been disclosed of the official document.