Posts Tagged ‘IEA’

IEA points to supply risks outside OPEC

A real prospect that export flows out of Libya can start to ramp up in the coming weeks after the resolution of a nine-month-long standoff with rebels couldn’t come at a better time for OPEC it seems.

According to the International Energy Agency’s latest monthly report, OPEC’s 12 members will need to pump an average of 350,000 b/d more during the second half of 2014 to meet global oil demand after their output slumped to a five-month low in March.

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An SPR bazooka and the central bank of oil

In a perfect world of crude pricing, there would exist a mechanism to soak up excess length when prices were low, and add length into the market when prices were high.

In the world of money, this is called a central bank, with a dual mandate of keeping inflation low and employment as full as possible. There is no central bank for crude oil. But if there were, its dual mandate would be a price floor for producers and a price ceiling for consumers. Read the rest of this entry »

IEA notes big jump in global oil supply in February

The oil market is no stranger to conflicting price signals, and the current period of relatively calm prices is a case in point.

The ongoing standoff between Russia and the West has so far caused only a relatively small, and short-lived rise in crude prices, despite the huge importance of oil trade between Russia and Europe, in particular.

If you want to know why the reaction was not bigger, you might want to take a look at the latest monthly report from the International Energy Agency, which has some very interesting data in it.

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Backwardation, tightening inventories and higher prices ahead…one view of the future

Energy economist Phil Verleger has been waging a steady war against the argument that “too much” trading of energy futures contributes to higher prices.

To the contrary, as he has written many times, in the long run it will contribute to lower prices, and current government efforts to curb speculation by diminishing volume is laying the groundwork for a reduction in US output and higher prices down the road.

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US demand growth rises to the fore

This month’s oil market report by the International Energy Agency seems to place the US in an even more pivotal role in balancing global oil markets.

With US oil demand firmly on the ascent, it appears the country’s economic recovery is now providing a counterweight to its surging supplies of tight oil.

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IEA report: US oil demand recovery steps on the gas

Signs that the US is experiencing at least a temporary surge in oil demand were reinforced Wednesday after the International Energy Agency said the US has seen its biggest spurt in demand growth for almost a decade.

In its latest monthly oil market report, the IEA said US oil demand likely averaged nearly 19.1 million b/d in September, up 900,000 b/d year-on-year and the fastest pace of growth experienced in nearly 10 years.

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Is OPEC right to ignore the oil price pessimists?

OPEC has often been criticized in the past for failing to cut crude output until the tide of oversupply is washing up at its shores. On Wednesday, the cartel ignored all the latest tidings of doom and gloom and rolled over for at least another six months the 30 million b/d output ceiling that has been in place since January last year. What else could it have done?

Undoubtedly, there is a long list of possible developments that could put heavy downward pressure on oil prices.

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IEA’s oil price pressures may be short-lived

The IEA has been struggling to find reasons to call on producers to help soften high oil prices for some time, and this month is no different.

With surging volumes of US shale oil, sliding demand in the OECD, muted Chinese growth and amble industry oil stocks, you know things are probably all well with global oil balances when the West’s oil consumer watchdog calls the market “well supplied.”

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US as oil producer top dog? It’s a question of timing

So exactly when will the US shale revolution allow the world’s biggest oil consumer to topple Saudi Arabia as the biggest global oil producer?

The International Energy Agency reignited the perennial supply topic Friday with its latest monthly oil market report. According the report, the US will, at least, replace Russia as the world’s number two oil producer before mid-2014.

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US to the rescue in covering Libyan barrels

The International Energy Agency has struck an uncharacteristically upbeat chord on global oil market balances as lingering concerns over strife in Syria and Libya continue to support oil prices.

In its latest monthly oil market report, the IEA concluded that global oil markets are well poised to cope with the loss of Libya’s oil production, even if it lasts for months to come.

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