Oil is cheaper on the report of the IEA demand for raw materials

Oil is cheaper on the report of the IEA demand for raw materials


The cost of the February futures for North sea petroleum mix of mark Brent fell to 38,12 dollars per barrel. The price of January futures for WTI crude oil decreased to 35,48 USD per barrel.

MOSCOW, Dec 14. The world prices for oil during the auctions on Monday decrease as a result of the report of the International energy Agency (IEA) on global oil demand in 2015-2016, according to AFP.

As of 07.23 MSK price of February futures for North sea petroleum mix of mark Brent fell by 0.53% to 38,12 dollars per barrel. The price of January futures for oil of mark WTI has decreased on 0,41% — to 35,48 USD per barrel.

According to a report by the IEA, its new forecast coincides with the previous one. The Agency still expects demand growth in 2015 to 1.8 million barrels of oil a day, and in 2016 — 1.2 million barrels a day. In its report, the IEA also noted that global oil markets will remain in oversupply until the end of 2016.

In addition, the report notes that in November crude oil supplies to the world market exceeded 96,9 million barrels a day, amid supply growth from OPEC. Meanwhile, shipments from countries outside the cartel amounted to 58.5 million barrels per day. Oil production by OPEC in November increased by 50 thousand barrels per day, up to 31,73 million barrels per day.

The negative dynamics of oil continue to affect the OPEC’s decision of 4 December. The organization decided not to change quotas on oil production, amounting to 30 million barrels per day, thus decided to maintain the level of actual production that exceeds the quota by 1.5 million barrels.

Data of the American oil service company Baker Hughes weekly drilling rigs dynamics slightly keeping the prices from falling. According to Baker Hughes, the rig count in the USA by the end of the work week decreased by 28 units, or at 3,79% and totaled 709 units. In annual terms, this figure dropped to 1184 units, or 62.5%. The number of oil rigs has declined 21 points, or 3,85%, to 524 units. While the number of gas rigs declined by 7 units, or 3.6%, and totaled 185 units.