• 40 mins Here’s Your Chance To Blow Up An Oil Pipeline
  • 2 hours Shell Restarts Bonny Light Exports
  • 3 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 10 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 15 hours British Utility Companies Brace For Major Reforms
  • 19 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 21 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 22 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 23 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 24 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 1 day India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 8 days Renewable Energy Startup Powering Native American Protest Camp
Alt Text

Is OPEC Considering Deeper Output Cuts?

You could argue OPEC and…

Alt Text

Iran Ready For OPEC Oil Deal Extension

Iran is ready to take…

Alt Text

Aggressive OPEC Pushes Oil Prices Up

Oil prices are once again…

Crude Oil Higher On Pre-Doha Hopes

Crude Oil Higher On Pre-Doha Hopes

Today is national ‘reach as high as you can’ day, and it feels like the oil market is getting into the spirit of things, pushing on to new two-month highs. After yesterday’s weekly inventory report distracted us (well, just a wee bit) from the impending Doha meeting, the IEA’s oil market report today has provided some food for thought. Hark, here are six things to consider relating to oil markets today:

1) The IEA’s monthly oil market report is in line with the demand forecasts from the OPEC and EIA in recent days. The IEA sees oil demand growth at the same level as its peers, +1.2 million barrels per day; this has been revised lower due to fears of slowing demand growth in China, the U.S. and Europe (the other two pointed to economic weakness in Latin America instead).

2) In contrast to the EIA, the IEA sees the market balancing later in the year, as demand growth remains steady, and non-OPEC supply (read: U.S. output) falls. Related: Why Low Oil Prices Haven’t Helped The Economy

The EIA, however, doesn’t see the global market rebalancing until the latter half of next year. It expects global inventories to build by an average of 1.4mn bpd in 2016, and to grow by 0.4 million bpd next year:

(Click to enlarge)

3) Onto the economic data front, and the Eurozone CPI print has clung on to the edge of inflation like the ledge of a tall building. With all paths leading back to energy, falling fuel prices were again a major factor last month, meaning that year-on-year it was unable to grapple its way into inflationary terrain:

(Click to enlarge)

Eurozone inflation YoY (source: investing.com)

4) There has been little else out of note data-wise except for the U.S.. The US also saw inflation data released, with it looking subdued across the board once again – providing no ammo for the Fed in their rate hike ambitions. Related: End Of An Era: Peabody Declares Bankruptcy

As for weekly jobless claims, they tied the lowest level of claims since 1973 at 253,000 – an historic feat:

(Click to enlarge)

Initial Jobless Claims (source: investing.com)

5) We highlighted last month how a force majeure on Nigeria’s Forcados blend was likely to limit crude exports into May. This is showing up in our ClipperData, just as it is in OPEC’s data, with Nigerian production down 133,000 bpd over the last two months.

Forcados exports have averaged 286,000 bpd since the beginning of last year, accounting for 15 percent of total Nigerian crude oil exports. Our ClipperData show that loadings of Forcados have dropped right off in March. Correspondingly, total Nigerian crude loadings are down to their lowest level since 2013: Related: Why India Matters More For Oil Than China

(Click to enlarge)

6) Don’t forget, it’s a big night tonight in terms of Chinese economic data, with GDP, industrial production and retail sales.

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News