IEA Forecast | Russell T. Rudy Energy LLC
A recent article in “World Oil” cites the latest forecast from the International Energy Agency, the advisor to 29 oil consuming nations. The report predicts that record world-wide oil inventories will persist through 2016 in spite of surging demand and falling non-OPEC production. In fact, the agency foresees global stockpiles building even further.
Predictably, prices will continue to be weak as U. S. production rates continue to resist lower prices, and concerns grow about the stability of China’s economy. The IEA expects the global oil glut to average 1.4 million barrels per day (bopd) for the rest of this year before falling to 850,000 bopd in 2016.
OPEC production continues at its highest rate in three years. The cartel produced 31.79 million bopd in July as record Iraqi production more than offset a pullback by Saudi Arabia.
The IEA sees global demand increasing at twice last year’s pace for the rest of 2015, reaching an average of 94.2 million bopd, and 95.6 by 2016. The report states “The emerging trend shows a clear link between sharply lower prices, accelerating oil demand growth and recuperating economic conditions.”
The agency also predicts non-OPEC supplies shrinking by 200,000 bopd in 2016 with Canada, Brazil and Russia all experiencing downturns in production. However, it sees U. S. production suffering the largest decreases.
To read the article in its entirety, please go to http://www.worldoil.com/news/2015/8/12/iea-sees-oil-glut-enduring-in-2016-after-reaching-17-year-high .
