Will Crude Oil Provide and Demand Steadiness in 2017?
Crude oil costs
November West Texas Intermediate crude oil futures contracts rose 1% and have been trading at $45.7 per barrel in electronic trading at 6:10 AM EST on September 22, 2016. Costs prolonged the rally from the previous day. For more on crude oil costs, learn Part 1 of this sequence.
Prices rose in August and located help in September 2016 on account of speculation about main oil producersmeeting. The meeting could lead to an output cap. Read Crude Oil Prices Rose after Skepticism about Output Freeze Talks to study extra.
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Crude oil provide and demand balance
The chance of accelerating crude provides from Libya and Nigeria will add to the oversupplied crude oil market. Read How Rising OPEC Crude Oil Manufacturing Is Affecting Oil Market, Will Russia’s Crude Oil Production Attain Historic Ranges? and can Iran’s Crude Oil Manufacturing Pressure Crude Oil Costs? for extra on oversupply.
The Group of the Petroleum Exporting International locations reported that nations just like the US, Russia, and Norway might produce 190,000 bpd (barrels per day) extra in 2016—compared to earlier estimates.
The U.S. Vitality Information Administration estimates that the global crude oil supply may outstrip demand by 1.1 MMbpd (million barrels per day) in 2H16—compared to 2.2 MMbpd in 1H16. It expects that the crude oil provide and demand will attain a steadiness in 2017.
The International Energy Company reported that slowing crude oil demand, excessive international crude oil and product inventories, and rising crude oil manufacturing will lengthen the crude oil oversupply till 1H17.
Modifications in demand and supply estimates may cause volatility in crude oil prices. Read US Crude Oil Costs Rebound from Multi-Week Lows for more on US crude oil priceshighs and lows.
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