Oil prices sink after International Energy Agency's outlook

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Brent crude oil was down 62 cents at $56.32 a barrel by 1:43 p.m. ET.

At the end of 2016, OPEC and 11 independent producers -Azerbaidzhan, Bahrein, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan and South Sudan- agreed to reduce oil production by 1.8 million barrels per day. S. inventories and a falloff in weekly production on Thursday.

The agency forecast that 2018 crude oil output will rise by 680,000 barrels per day (bpd) to 9.92 million bpd.

Angola's production, based on direct communication, was 1.657 million barrels per day, a monthly drop of 23,000 barrels, with no data from Nigeria in this case.

The OPEC-led deal helped lift oil from below $30 a barrel early a year ago.

This supports what I have been saying all along that prices are likely to remain rangebound until OPEC and other major producers vote to extend the production cuts beyond the May 2018 deadline and also decide to deepen those production cuts.

The entity said the world would need 33.06 million barrels per day (bpd) of its crude next year, 230 thousand barrels morer than its previous forecast.

Traders have expressed concerns of late that the United States will at some point reach its export capacity, though that has not been hit yet.

"Our updated global supply-demand balance ... shows peak stock draws in 3Q17", Goldman Sachs said in a note to clients. From this we can conclude that the outlook for the market over the near-term is likely to be bearish because of the forecast for lower oil demand in 2018.

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