• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 2 hours Science: Only correct if it fits the popular narrative
  • 44 mins Crazy Stories From Round The World
  • 14 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 19 hours EU has already lost the Trump vs. EU Trade War
  • 12 hours China's Renewables Boom Hits the Wall
  • 2 days ''Err ... but Trump ...?'' *sniff
  • 3 hours Do The World's Energy Policies Make Sense?
  • 13 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 6 hours Impeachment Nonsense
  • 1 day Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 1 day Tesla Launches Faster Third Generation Supercharger
  • 18 hours Water, Trump, and Israel’s National Security
  • 2 days Passerby doused with flammable liquid and set on fire by peaceful protesters

Breaking News:

Russia Plans To Boost Crude Oil Exports

Alt Text

Economic Uncertainty Leaves Oil Markets Paralyzed

The Federal Reserve cut interest…

Alt Text

Canadian Oil Prices Crash After Keystone Spill

Canadian crude continues to trade…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

IEA Sees Oil Market Supply Deficit Deepen Significantly This Year

Global oil demand will exceed supply in the second quarter, and even more so until the end of the year, if OPEC extends the production cuts, according to Neil Atkinson, head of oil analysis at the International Energy Agency (IEA).

“It is starting to become clear that if the objective of the OPEC cuts was to flip the market from surplus into deficit that is now slowly beginning to happen,” Atkinson said at the Platts Crude Oil Summit in London on Wednesday, as quoted by MarketWatch.

The market is largely expecting OPEC to extend its production cuts until the end of this year, and Saudi Oil Minister Khalid al-Falih has even hinted at extending the deal into early 2018, citing producers’ resolve to do ‘whatever it takes’ to rebalance the market.

The IEA has been optimistic that the balance will be achieved. As early as its March Oil Market Report, the IEA said that the market needs time to see a significant drawdown, and expected an implied deficit of 500,000 bpd for the first half at current production levels and supply and demand fundamentals.

In its April Oil Market Report, the international agency noted that “It can be argued confidently that the market is already very close to balance, and as more data becomes available this will become clearer.”

At the time, the IEA downgraded global oil demand growth for 2017, dropping its estimate to 1.3 million bpd. Related: Is The Market Ignoring OPEC?

With OPEC’s cuts extended through the end of this year, the supply deficit will deepen in the second half of 2017, according to Atkinson.

“If you were to take the IEA’s oil report and look at estimates of what OPEC might do — it might rollover the existing levels — and assume no changes to the demand and supply outlook, you will find that as we move to the second half of the year it is likely that the surplus in demand and supply will grow,” according to the analyst, MarketWatch reports.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • petergrt on May 10 2017 said:
    Whatever it takes . . . . say the Saudis, as their market share is being taken over by the Russians, the US, and etc. . . . .

    IEA is a paid cheerleader for oil . . .
  • rjs on May 11 2017 said:
    according to OPEC's own figures, there was still an excess of production over demand in March:
    http://focusonfracking.blogspot.com/2017/04/april-opec-report-shows-global-glut.html

    (caveat: new report is due out today)

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play