Markets

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

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

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


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

Commodities