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11 Dec 2015
IEA raises 2016 global oil demand forecast
FXStreet (Mumbai) - The Paris based International Energy Agency (IEA), in its latest monthly report, raised its 2016 global oil demand forecast by 20k barrels per day (bpd) to 1.23 million bpd. The report maintained that oil markets would continue to remain oversupplied at least till end-2016.
The IEA says the recent OPEC decision to lift the output ceiling was a reality check to traders/investors anticipating a cut in the OPEC production – change in OPEC strategy. The report says, “The early December move appears to signal a renewed determination to maximize low-cost OPEC supply and drive out high-cost non-OPEC production - regardless of price.”
Key Quotes
Non-OPEC supply seen contracting by 600k bpd next year
Estimates of non-OPEC 2016 output broadly unchanged
The IEA says the recent OPEC decision to lift the output ceiling was a reality check to traders/investors anticipating a cut in the OPEC production – change in OPEC strategy. The report says, “The early December move appears to signal a renewed determination to maximize low-cost OPEC supply and drive out high-cost non-OPEC production - regardless of price.”
Key Quotes
Non-OPEC supply seen contracting by 600k bpd next year
Estimates of non-OPEC 2016 output broadly unchanged