Tight Mkt Fundamentals, Risks Surrounding Iran Underpin 20% Rise in Crude Prices Since December: Oil Market Report
The March Oil Market Report (OMR) highlights tight market fundamentals and risks surrounding Iran underpinning the 20% rise in crude prices since December. OECD industrial oil inventories are below their five year average, and OPEC spare capacity below 3 million barrels per day (mbd). Non-OPEC supply in Syria, Yemen and Sudan, South Sudan has been shut-in, although higher 2012 output is likely from the Americas and Former Soviet Union. In contrast, OPEC February output reached a post-2008 high, with Saudi Arabia producing 10 mbd. Anticipated 2012 demand growth is unchanged at +0.8 mbd, and concerns over the global economy provide a ceiling for prices. Refining activity remains buoyant in the US, China and Russia, although margins generally are weak.
The Oil Market Report (OMR) is a monthly International Energy Agency publication which provides a view of the state of the international oil market and projections for oil supply and demand 12-18 months ahead
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