Oil climbs as IEA sees fastest demand growth in two years

Oil climbs as IEA sees fastest demand growth in two years

Oil climbs as IEA sees fastest demand growth in two years

OPEC has cut almost one million barrels a day of oil output in the past year.

"We believe that Irma will have a negative impact on oil demand but not on oil production or processing", Goldman Sachs analysts said in a note.

Cushing inventories recorded a build of 1.02mn barrels on the week which was close to consensus expectations.

Despite this, oil prices rose by around 0.8 percent. In August, the IEA has anticipated annual growth would hit 1.5 mb/d, again an increase on July's 1.4 mb/d forecast.

OPEC's oil output dipped in August, the cartel said Tuesday, a sign that supply and demand could be moving further towards balance.

West Texas Intermediate for October delivery rose 72 cents to $48.95/bbl at 12:14 p.m. on the New York Mercantile Exchange.

Murdoch's Sky £11.7bn bid referred to CMA
One concern raised was that Sky "did not have adequate compliance procedures in place for the broadcast of Fox News in the UK". Sky has 22 million customers in five European markets: Italy, Germany, Austria, the United Kingdom and Ireland.

Glass panels plummet from 85-story Miami building after Irma hits
The study was based on data gathered during 2016's Hurricane Matthew, which flooded northeast Florida, destroying homes in St. The horizontal arms of the tall tower cranes, however, will remain loose despite the potential danger of collapse.

Death toll in Mexico's biggest quake continues to rise
A total of 61 people have been reported as the new death toll figure after an 8.2 quake hit Mexico's Pacific Thursday night. The 8.1 quake off the southern Pacific coast just before midnight Thursday toppled hundreds of buildings in several states.

The deal agreed late past year to reduce output by about 1.8 million bpd until March 2018 helped to keep prices as high as $58 a barrel in January, but they have since sagged as global stocks have not fallen as quickly as expected. Still, that's about in line with the group's production last month, meaning OPEC won't be able to reverse its current output curbs if it wants to keep world markets balanced next year.

Oil exports from member countries have also declined, but by a significantly smaller margin than production cutbacks. If we see better compliance as per data in the OPEC report due this week, it will help prices move up more convincingly.

Much of that was due to a near 10 million-barrel increase in stocks in the U.S. Gulf region and as crude production rebounded from a brief Harvey interruption. "There is a need to consider how we place our stocks, where we place our stocks and the combination of crude oil versus products is an issue that we need to pay attention to", he said when asked if the United States should reconsider moving its fuel stocks.

Separately, analysts polled by Reuters expected USA crude stocks to have risen by 2.3 million barrels last week while those surveyed by Bloomberg expected a build of 4.9 million barrels. Total volume traded was about 3% below the 100-day average.

Saudi Arabia has energy-reliant economy continues to struggle since oil prices tanked in 2014.

With ongoing rebalancing, the IEA raised its call on OPEC's oil by 0.1 million bpd for both 2017 and 2018.

Related news