• 22 hours Iraq Begins To Rebuild Largest Refinery
  • 1 day Canadian Producers Struggle To Find Transport Oil Cargo
  • 1 day Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 1 day China's CNPC Considers Taking Over South Pars Gas Field
  • 1 day BP To Invest $200 Million In Solar
  • 1 day Tesla Opens New Showroom In NYC
  • 1 day Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 1 day Venezuela Sells Oil Refinery Stake To Cuba
  • 2 days Tesla Is “Headed For A Brick Wall”
  • 2 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 2 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 2 days Goldman Bullish On Oil Markets
  • 2 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 2 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 2 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 2 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 3 days Colombia Boosts Oil & Gas Investment
  • 3 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 3 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 3 days Aramco On The Hunt For IPO Global Coordinators
  • 3 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 3 days India Feels the Pinch As Oil Prices Rise
  • 3 days Aramco Announces $40 Billion Investment Program
  • 3 days Top Insurer Axa To Exit Oil Sands
  • 4 days API Reports Huge Crude Draw
  • 4 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 4 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 4 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 4 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 4 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 4 days Exxon To Start Reporting On Climate Change Effect
  • 5 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 5 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 5 days Forties Pipeline Could Remain Shuttered For Weeks
  • 5 days Desjardins Ends Energy Loan Moratorium
  • 5 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 5 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 5 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 8 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 8 days Mexico Blames Brazil For Failing Auction

Breaking News:

Iraq Begins To Rebuild Largest Refinery

How Robots And AI Will Transform Mining

How Robots And AI Will Transform Mining

The adoption of drones, robots…

‘’Oil To Remain Below $60 Through 2018’’

Oil rig sunset

Crude oil and other liquids inventories grew by 2.0 million barrels per day in the fourth quarter of 2016, the US Energy Information Administration (EIA) estimates in its global oil forecast published on Wednesday, stating that oil prices should remain below US$60 through the end of 2018.

The global crude oil and liquids inventory build was driven by an increase in production and a significant, but seasonal, drop in consumption, the EIA said.

Oil prices had been under pressure after the American Petroleum Institute (API) released its bearish inventory data on Tuesday, in anticipation of the official EIA data.

The API data showed crude, gasoline and distillate stockpiles rising more than expected.

Although the U.S. is currently increasing production, the EIA says global crude oil markets are expected to tighten through 2018.

“Global production and consumption are both projected to increase through 2018, but consumption is expected to increase at a faster rate than production,” the EIA said.

The production increase in the fourth quarter of 2016 largely reflects members of the OPEC ramping up production in advance of implementing the agreement on production cuts.

Global production is expected to have increased by 1.6 million barrels per day in the fourth quarter of 2016, with OPEC accounting for 0.9 million barrels per day, or 55 percent of this increase, the EIA said.

Related: ‘’Trump’s Border Tax Plan Could Cause A Global Oil Price Shock’’

The EIA estimates that total global production averaged 96.4 million barrels per day in 2016. Global production is expected to increase to 97.5 million barrels per day in 2017 to 98.9 million barrels per day in 2018.

Given annual inventory builds, “along with a lack of a significant draw on existing inventories, prices remain below $60/b through the end of 2018,” according to the EIA report.

For 2017, the EIA expects Brent crude spot prices to remain flat because of an uptick in U.S. shale oil production. The agency expects prices to average about US$53 per barrel this year, slowly increasing in 2018 but averaging about US$56 per barrel for the year.

By Damir Kaletovic for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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