Home / Energy/ IEA sees global oil market returning to surplus in early 2017

IEA sees global oil market returning to surplus in early 2017


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 15 June 2016 00:00


LONDON (Reuters): Oil supply and demand will balance in the second half of 2016 after a series of unplanned production outages, but the market is expected to tilt into surplus in the first half of next year, the International Energy Agency said on Tuesday.

The agency said demand growth in 2017 is likely to be flat at around 1.3 million barrels per day (bpd), the same level at which it estimates growth for this year, having revised up its May 2016 forecast of 1.2 million bpd.DFT-6-11

“Again, on the planning assumption that OPEC oil production grows modestly in 2017, we expect to see global oil stocks build slightly in the first half of 2017 before falling slightly more in the second half of 2017. For the year as a whole, there will be a very small stock draw of 0.1 million bpd,” the IEA said in its monthly report.

“At halfway in 2016, the oil market looks to be balancing; but we must not forget that there are large volumes of shut-in production, mainly in Nigeria and Libya, that could return to the market, and the strong start for oil demand growth seen this year might not be maintained,” the Paris-based agency said.

Most of the anticipated demand growth this year and in 2017 is expected to come from nations that are not part of the Organisation for Economic Cooperation and Development, the agency said.

On the supply side, the IEA said output fell by 590,000 bpd year-on-year to 95.4 million bpd in May, the first significant decline since the start of 2013, as spending cuts and outages cut non-OPEC production by 1.3 million bpd from a year earlier.

 


Share This Article


COMMENTS

Today's Columnists

Spotlight on Franco-German Human Rights Award winner, Sri Lanka’s Shreen Saroor

Saturday, 16 December 2017

Noted Sri Lankan human rights campaigner Shreen Abdul Saroor received the Franco-German Human Rights Award at a ceremony on Monday in the presence of Minister of Finance and Media Mangala Samaraweera and the German Ambassador to Sri Lanka Jörn Rohde


Thoughts on the Budget and what comes next

Friday, 15 December 2017

The recent Budget definitely improves on previous budgets. It is a promising debut for Mangala Samaraweera, the new Finance Minister. He sees...


2017 a decisive year; what’s in store for 2018?

Friday, 15 December 2017

‘Creating a Shared Future in a Fractured World’ is be the goal of the World Bank and the IMF in 2018. In the last 12 months the global...


Call to probe Lanka’s trade with Singapore and UAE for black money transactions

Friday, 15 December 2017

Sri Lankan economist Dr. Muttukrishna Sarvananthan has called for a probe into the financing of the substantial trade between Sri Lanka and countries like Singapore and the UAE, to check possible black money transactions


Columnists More