Sector Update: Oil Futures Edge Lower as IEA Trims Demand Expectations
U.S. crude oil futures are lower Tuesday morning, taking a hit after the International Energy Agency trimmed its demand expectations for oil.
The IEA expects world demand for oil will be 1 million barrels of oil a day, down by 180,000 barrels compared to its prior forecast due to lower demand for oil in Q2.
The IEA also decreased its 2015 demand expectations, to 1.3 million barrels a day, 90,000 barrels a day less than previously forecast due to weaker growth in China and Russia.
"Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic basin," the report said.
The latest monthly update showed output from the Organization of the Petroleum Exporting Countries rose by 300,000 barrels a day in July to a five-month high of 30.44 million a day a day. Production by OPEC's largest producer, Saudi Arabia, rose by 230,000 barrels a day.in July to 10.01 million barrels, the highest level since September. Libya also witnessed a sharp rise in production. This more than compensated for production declines in Iraq.
At last glance, oil futures were down 0.86% at $97.24 a barrel.
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