International Energy Agency - Oil Market Report - Highlights
1.Oil Demand :
IEA estimated that the global oil demand will grew very strongly y-o-y in 2Q17, by 2.3 mb/d (2.4%). IEA revised its growth estimates for 2017 upwards to 1.6 mb/d which was estimated as 1.5 mb/d in the previous report. OECD demand growth continues to be stronger than expected, particularly in Europe and the U.S. Hurricanes Harvey and Irma are projected to slow US oil demand growth in 3Q17 as per report.
2.Oil Supply :
IEA reported that the global oil supply fell by 720 kb/d in August, the first decline in four months cut supply to 97.7 mb/d mainly in non-OPEC countries. Ten non-OPEC countries cooperating with production cuts achieved more than 100% compliance for the first time. OPEC crude output fell in August for the first time in five months, decreased by 210 kb/d from 2017 high to 32.67 mb/d. The 12 members bound by supply cuts increased their compliance rate to 82% from 75% During July. The compliance rate for the whole year is 86%.
3. Oil stocks :
OECD commerical stocks were unchanged in July and the surplus over the five - year average fell to 190 mb. OECD product stocks were only 35 mb above the five-year average at end of July and could soon fall below it because of the impact of Hurricane Harvey as per IEA report.
4. Oil prices :
Benchmark crude prices rose by $1-3/bbl in August with higher crude demand and outage in Libya. North American crude lagged behind global benchmarks and Hurricane Harvey increased the gap in late August. Diesel and gasoline prices went higher, Report said.
5. Oil Refinery operations :
For 3Q17, IEA revised down the refinery throughput forecast by 0.7 mb/d, due to Hurricane Harvey’s impact. This results in global refined product under supply for the second consecutive quarter. In 4Q17, throughput will reach another record level, at 80.9 mb/d as refiners respond to higher margins in the tight product markets.
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