Oil prices rise upon positive report

Offshore staff

PARIS – Oil prices jumped again as a recent report from the International Energy Agency (IEA) pointed to signs of a possible market turnaround.

Earlier this month, prices rose to their highest levels in three months, stoked by factors including recent outages in Iraq, Nigeria, and the UAE; proposed new producer talks on coordinated output action; and US dollar weakness, the IEA said in its March Oil Market Report.

“International crude oil prices have recovered remarkably in recent weeks,” it said.

WTI is currently trading at $38.68/bbl, with Brent futures at $40.30/bbl. Despite their recent slides, both are up more than $2/bbl from even one week ago.

The report said the recent price increase has also been bolstered by lower OPEC and non-OPEC production. The IEA found that global oil supplies eased to 96.5 MMb/d, shedding 180,000 b/d in February.

However, production stood 1.8 MMb/d above a year earlier, as a slight decline in non-OPEC output "was more than offset by OPEC gains," the IEA said. In 2016, it estimated non-OPEC production to fall to by 750,000 b/d, or 100,000 b/d less than foreseen in February.

Sharp decelerations in demand growth - particularly in the US and China - pulled global growth down to a one-year low of 1.2 MMb/d in 4Q 2015. The agency said this was "dramatically below" the near five-year high of 2.3 MMb/d in 3Q 2015. A gain of around 1.2 MMb/d is forecast for 2016.

Still, the IEA was cautious, noting that the recent gains “should not, however, be taken as a definitive sign that the worst is necessarily over. Even so, there are signs that prices might have bottomed out.”


Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...