Breaking News

Global Demand For Oil Could Exceed Expectations In 2017

By AvaTradeCommoditiesSep 13, 2017 08:46AM ET
Global Demand For Oil Could Exceed Expectations In 2017
By AvaTrade   |  Sep 13, 2017 08:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Europe and US may push global oil demand to the highest point since 2015. Estimations for demand growth in 2017 may increase by 100,000 barrels per day to 1.6 million a day, or a 1.7% increase. The supply glut has plagued the oil market and has delayed the re-balancing of oil prices. However, with OPEC supplies dwindling for the first time in 5 months after turmoil in Libya curtailed supply and other members produced less. Storages of refined fuels are decreasing to average levels in developed nations which may indicate that bullish bets on the horizon.

The impact of Hurricane Harvey will likely be short-term and will mostly affect the crude oil market. Government reserves and European imports provided a cushion, diminishing the effects of the natural disaster.

Inventories are edging closer to averages thanks to the 9-month output production cut. Spreads are tightening, an indication that crude prices may rise above the $50 level. Supporting this is OPEC’s recent commitment to supply cuts, announcing the body are prepared to extend the production cuts beyond March next year.

Global demand is outpacing expectations, this alone could push prices upwards. However, OPEC’s expectations of reaching $60 per barrel still seems unlikely.

Crude oil climbed 0.6 today, trading at $48.63. Meanwhile, Brent oil added 0.57% to its value, trading at $54.57. Find out by the spread between the two has widened.

We have crude oil inventories at 03:30 London time. It is expected that the change in the number of barrels held in inventory will be 4.1M down from 4.6M last week.

Crude Oil:

Crude Oil Chart
Crude Oil Chart

Global Demand For Oil Could Exceed Expectations In 2017
Global Demand For Oil Could Exceed Expectations In 2017

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email