• 5 minutes Global Economy-Bad Days Are coming
  • 8 minutes IT IS FINISHED. OPEC Victorious
  • 14 minutes Venezuela continues to sink in misery
  • 17 minutes Could Tesla Buy GM?
  • 8 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 15 mins OPEC Cuts Deep to Save Cartel
  • 11 hours What will the future hold for nations dependent on high oil prices.
  • 43 mins Price Decline in Chinese Solar Panels
  • 2 hours And the War on LNG is Now On
  • 5 hours Alberta Cuts Push Prices Too High
  • 1 day Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 9 mins USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 30 mins How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 1 day Permian Suicide
  • 2 days Asian stocks down
  • 2 hours Rigs Down

Breaking News:

Michigan Greenlights Oil Pipeline Project

Alt Text

Could Iraq Be The Next OPEC Member To Exit?

Just two days after Qatar’s…

Alt Text

Will Self-Driving Cars Ever Be Safe Enough?

Collisions involving self-driving cars are…

Alt Text

Falling Rig Count Can’t Halt Oil Price Slide

Oil prices continued to fall…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

OPEC Head: Oil Inventories Already Dropping From High Levels

Global oil stocks have already started falling, but they need to drop by another 270 million barrels so that OPEC can say that the oil market is coming to balance, OPEC Secretary General Mohammed Barkindo told Reuters on the sidelines of the World Economic Forum in Davos.

OPEC’s main goal is to speed up the inventory drawdown, and it will continue to focus on bringing the level of drawdown near a five-year industry average, the organization’s chief said.

“Stocks have already come down to below 3 billion barrels in OECD commercial stocks. The delta now is around 270 million,” Barkindo told Reuters.

OPEC’s latest Monthly Oil Market Report published on Wednesday said that total OECD commercial stocks fell in November 2016 to stand at 2.993 billion barrels, some 271 million barrels above the latest five-year average.

The drop in oversupply would help create an “equilibrium oil price”, according to Barkindo.

OPEC and 11 non-OPEC producers, including Russia, have agreed to cut oil supply beginning January 1 in a coordinated effort to bring markets to balance and lift oil prices.

The cartel’s total production dropped in December by 221,000 bpd to 33.08 million bpd, OPEC’s report from yesterday showed, sending a bullish signal to the markets that supply was down from the high levels in October and November. Related: $25 Trillion Investment Needed To Meet Future Oil Demand

Further along the demand-supply narrative, OPEC raised its forecast for global crude oil demand to 95.60 million bpd—up by 1.16 million bpd from the estimated 2016 average of 94.44 million barrels daily. This is an upward revision from the previous 1.15 million bpd estimated for global daily oil demand this year.

The group said that the upward revision was prompted by a “better than expected performance” in the European and Asia-Pacific members of OECD, especially thanks to an expected increase in demand in Europe in the first quarter of this year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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