International Energy Agency lifts 2017 global oil demand outlook

Marco Green
September 13, 2017

IEA analysts noted that OPEC crude output fell in August for the first time in five months, after renewed turmoil in Libya disrupted flows and others pumped less.

However, The International Energy Agency (IEA) still sees no need for a coordinated international release of oil stocks.

Industry group the American Petroleum Institute reported on Tuesday that US crude inventories rose by 6.2 million barrels in the week to September 8 to 468.8 million, almost double analysts' expectations for an increase of 3.2 million barrels.

"Depending on the pace of recovery for the United States refining industry post-(Hurricane) Harvey, very soon OECD product stocks could fall to, or even below, the five-year level", added the IEA. OPEC sees higher demand for its oil in 2018 as the global market tightens.

Looking at recent developments in the oil futures markets, the IEA called them "a sign that oil markets have started to rebalance".

The IEA's report follows OPEC's monthly report out Tuesday.

The average level of implementation of the agreement by countries outside of OPEC since the beginning of the year reached 68%. The 12 members bound by OPEC's supply pact raised their compliance rate to 82 percent from 75 percent during July. Azerbaijan reduced production in August by 78,000 with a quota of 54,000 barrels per day.

Oil stockpiles in developed countries could hit or fall below their five-year average "very soon", the International Energy Agency said Wednesday, nearing a key target for OPEC.

The IEA the impact of Hurricane Harvey, which struck the US Gulf Coast at the end of August where significant US refinery and export operations are concentrated, on oil markets should be brief.

Global oil supply fell by 720,000 barrels per day (b/d) in August due to unplanned outages and scheduled maintenance, mainly in non-OPEC countries, said the report.

U.S. West Texas Intermediate (WTI) CLc1 was up 38 cents, or 0.8 percent, at $48.61 a barrel.

Other reports by Click Lancashire

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