USA carbon resurgence fuels growing global demand

Alicia Cross
November 15, 2017

The Paris-based group said it cut its demand outlook for next year by 190,000 barrels a day, and global production could vault above demand by 600,000 barrels a day in the first quarter of 2018, and by 200,000 barrels a day in the second quarter.

Recent gains in crude oil values, which have put prices at plus $60/bbl, may not last if the factors driving price rises - namely, geopolitical tensions in the Middle East - prove to be temporary, the International Energy Agency (IEA) said on Tuesday.

Unless OPEC agrees to cut more production, output from non-member states will leave the market in surplus and limit the rally in oil prices, the IEA said.

This sentiment comes in part on the back of rising U.S. oil output, which has grown by more than 14 percent since mid-2016 to a record 9.62 million barrels per day (bpd).

IEA said it had cut its longer-term oil price projections from a year ago, partly because of the falling cost of both renewable and conventional sources of energy, the worldwide push to tackle climate change and improve air quality and the boom in United States shale oil and gas output.

According to the IEA, China overtakes the USA as the largest oil consumer around 2030, and its net imports reach 13 million barrels per day in 2040.

Two stabbed after confronting alleged thief at Macy's in Mall of America
The 20-year-old suspect accused of stabbing two men at the Mall of America in Minnesota has been identified. Both of the stabbing victims, according to CBS News , suffered non-life-threatening injuries.

Iran rejects Macron's call for talks on missile issue
The fate of the deal has fallen on the US Congress which has 60 days to reimpose nuclear sanctions. Harrigian's remarks appear to corroborate Saudi charges attributing the missile to Iran.

Palace boss Hodgson opens up on links to Jack Wilshere
Dixon says Wilshere's cause also isn't helped by Southgate and Arsene Wenger disagreeing on his most suitable position. When we have played with a 10, we have had Dele Alli and Adam Lallana.

The US government said on Monday US shale production in December would rise for a 12th consecutive month, increasing by 80,000 bpd. It expects global demand for oil to even rise in the decades ahead. But analysts expect the price to not rise much further in coming months as the U.S. ramps up production. Scientists just this week said that emissions of the heat-trapping gas rose this year after three years of not growing.

The effort, which started in January, is credited with pulling the price of oil back from the sub-$30 per barrel range last year to two-year highs in recent sessions.

"Prices ... are starting to look like a pause or pullback is needed", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

In fact, the monthly report published by IEA on Tuesday would back that theory up as it lowered its crude demand forecast for the whole of 2017 and 2018, by 50,000 bbl/day and 190,000 bbl/day respectively.

Between 2017 and 2040 the IEA estimates that more solar power capacity will be added globally each year than any other source of energy, with an annual average increase of almost 70 gigawatts.

Geopolitical tension in the Middle East and intermittent supply outages in the likes of Nigeria and Iraq have pushed oil above $60 a barrel for the first time since 2015, while global inventories have fallen, prompting many market watchers to raise their price forecasts.

Other reports by Free-Prsite

Discuss This Article

FOLLOW OUR NEWSPAPER