Oil: IEA, global markets have started to rebalance

Oil: IEA, global markets have started to rebalance

Editorial Staff
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Oil consumption is "modestly" increasing by 100,000 barrels up to 1.6 million barrels a day based on estimates of global oil demand growth for 2017, reaching a total of 97.7 million

"Oil markets have started to rebalance" and "are pointing to firmer fundamentals". This was stated in the monthly report of the International Energy Agency (IEA). The IEA recorded a "modest" increase of 100,000 barrels up to 1.6 million barrels a day based on estimates of global oil demand growth for 2017, reaching a total of 97.7 million. The forecasts have improved compared to August despite the negative impact of hurricanes Harvey and Irma on US demand. "Global demand growth forecasts for 2018 have been lowered by 100,000 barrels to 1.4 million barrels a day, and now stand at a total of 99.1 million barrels. According to the IEA, the ongoing economic recovery has led to an even greater demand from OECD advanced countries. In the third quarter of 2017, the demand will be negatively affected by the impact of the hurricanes on US production, but will resume growth in the fourth quarter. The IEA points out that, in August, global production decreased for the first time since last April, as OPEC recorded yesterday. However, this slowdown is linked not only to the agreement on production cuts of November 2016 but also to other events, such as Hurricane Harvey.