Commodity Trade Mantra

Posts Tagged ‘Global Oil Demand’

The Biggest Wildcard For Oil Prices Right Now - China

China’s record purchases, along with temporary production outages in Nigeria and Canada, helped rebalance supply and demand in the oil market. However, since that is now over, stopping shipments for the reserve would wipe out about 15% of the country’s imports & the price of oil would plunge as the already oversupplied market would find itself with an unprecedented glut of excess production.

Current Oil Price Rally Will Fizzle Out Say Analysts

All three of the energy bodies (IEA, U.S. EIA and OPEC) see the oil glut persisting into 2016, potentially taking another year for oil markets to balance out. And while all of them have some differences on where oil prices are heading in 2016, all of them seem to agree that there won’t be large price gains in the near-term.

This Is What Will Help Oil Prices To Stabilize

Oil Inventories will remain high in some parts of the world and will be drawn down in others. But overall, rising global oil demand and shrinking U.S. oil production (and other areas as well) will begin to eat away at inventory. It just requires some patience. There will be some foreshadowing in oil prices here.

OPEC Lowers Global Oil Demand Growth Expectations In 2016

OPEC provides this first serving, as they have released the third and final installment of key monthly oil reports after last week’s releases from the EIA and IEA. The cartel has upped its expectation for oil demand growth this year by 84,000 barrels per day to 1.46 mn bpd, but revised its forecast lower for next year by 50,000 bpd to 1.29 mn bpd.

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