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9 Feb 2016
Global oil surplus will be bigger than previously estimated - IEA
The Paris based International Energy Agency (IEA), in its monthly report, said the the surplus of supply over demand at the start of 2016 is “even greater” than initially expected.
The IEA lowered its estimates for global oil demand for last year and 2016, by 100,000 barrels a day.
On speculation of a OPEC production and/or OPEC and non-OPEC production, the IEA says “Persistent speculation…appears to be just that: speculation”.
Key Points
“With the market already awash in oil, it is very hard to see how oil prices can rise significantly, in these conditions the short term risk to the downside has increased”
“Bearish factors still taking hold of the oil market”
“With the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term. In these conditions the short term risk to the downside has increased.”
“Sees oil stocks building throughout 2016, by 2m bpd in Q1, 1.5m in Q2”
The IEA lowered its estimates for global oil demand for last year and 2016, by 100,000 barrels a day.
On speculation of a OPEC production and/or OPEC and non-OPEC production, the IEA says “Persistent speculation…appears to be just that: speculation”.
Key Points
“With the market already awash in oil, it is very hard to see how oil prices can rise significantly, in these conditions the short term risk to the downside has increased”
“Bearish factors still taking hold of the oil market”
“With the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term. In these conditions the short term risk to the downside has increased.”
“Sees oil stocks building throughout 2016, by 2m bpd in Q1, 1.5m in Q2”