The International Energy Agency came out with their monthly report earlier
- cuts 2016 demand growth forecast to1.3ln bpd vs 1.4bln bpd prev
- 2017 forecast unch at 12mln bpd
- global refinery runs in 2016 set to grow at lowest rate in a decade and will delay market rebalancing
- crude oil to outpace demand " at least through the first half of next year as demand growth slows
- OECD total inventories built by 32.5 mb in July to a fresh record of 3 111 mb. As refinery activities reached a summer peak, crude oil inventories refused to decline until an exceptional storm-related draw hit the US in late August.
The focus has been all about over supply but we now have a reality check on demand as global economic growth falls down a deepening hole.
Brent crude has fallen from $47.85 to $47.20. WTI lows of $45.04
Currently $47.36 and $45.21
Full IEA report here