Markets

Oil price falls as IEA highlight demand slowing faster than expected

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx