Proactive Investors - Run By Investors For Investors

Crude prices lag on global demand fears

The Paris based organisation IEA cut its oil demand growth forecast by 100,000 barrels per day (bpd) for this year and next
Crude prices lag on global demand fears
The price of West Texas Intermediate dropped 1.94% at US$55.66 a barrel

Crude prices tanked on Tuesday with West Texas Intermediate down 1.94% at US$55.66 as a new report from the IEA (International Energy Agency) painted a downbeat picture on demand.

The Paris based outfit cut its oil demand growth forecast by 100,000 barrels per day (bpd) for this year and next, to an estimated 1.5 million bpd (barrels per day) in 2017 and 1.3 million bpd in 2018.

This report appeared to contrast with OPEC's forecast on Monday, which raised its demand outlook by 130,000 bpd from its previous estimate.

It now expects oil demand to rise by 1.51 million bpd next year.

Brent crude was down 0.57% to US$63.16 per barrel at the time of writing.

Meanwhile, in terms of geographies, the USA  is set to become the undisputed leader in crude and gas production, the IEA said..

Oil production will be driven by continued growth in energy-hungry industries, despite solar power set to become the cheapest source of new electricity generation.

Demand for oil in general is forecast to keep rising until 2040, with natural gas growing by a sharp 40%.

The price of the black stuff has risen over 30% since June to a two-year high of around US$57 a barrel in New York trading amid signs of firmer economic growth globally.

But analysts expect the price to not rise much further in coming months as the USA ramps up its production.

View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

Mobile users holding phones up
September 05 2018
The mobile advertiser is placing itself at the forefront of the digital revolution as companies and brands increasingly look to the web as the next forefront of advertising
ipad
September 20 2018
“Cello Health is successfully building its early stage asset development advisory platform for biotech clients, as well as growing its core later stage and post-launch franchise with pharmaceutical clients”
Marketing and public relations
April 04 2018
"Our Beyond, MBooth and Publitek agencies have been stand-out performers, whilst we have achieved solid performances pretty much across the portfolio"

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use