Why Is There A Crude Oil Supply And Demand Hole In 2017 And 2017?

Why Is There a Crude Oil Provide and Demand Hole in 2016 and 2017?

Crude oil supply and demand hole

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The EIA (U.S. Power Info Administration) released its Quick-Term Energy Outlook (or STEO) report on February 9, 2016. The report highlighted that global crude oil production may average around 96.1 MMbpd (million barrels per day) in 2016. It might marginally improve to 96.8 MMbpd in 2017.

Global crude oil production averaged ninety five.6 MMbpd in 2015. electric heating jacket reaction kettle The EIA estimates the global crude oil supply and demand hole to common 1 MMbpd in 2016 and 0.2 MMbpd in 2017. The EIA reported that international consumption should grow by 1.2 MMbpd in 2016 and 1.5 MMbpd in 2017.

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Crude oil supply and demand gap per IEA

The IEA (Worldwide Energy Agency) reported that the global supply and demand gap for crude oil could common around 1.Eight MMbpd in 1H16. The IEA added that Iran scaled up manufacturing in January 2016. OPEC‘s (Organization of the Petroleum Exporting International locations) prime producers Iraq and Saudi Arabia proceed to produce close to record levels. You can even read about China’s crude oil manufacturing in the article China’s Crude Oil Manufacturing: A Sport Changer in 2016?

Oil costs could be underneath great strain in 2016 and 2017 till the supply and demand hole narrows in late 2017. The rising global crude oil inventories and widening provide and demand gap will put pressure on oil producers such as Murphy Oil (MUR), Noble Energy (NBL), Occidental Petroleum (OXY), and Marathon Oil (MRO). For extra on US power companiesfinancial woes, read US Oil and Gas CompaniesDebt Exceeds $200 Billion.