{"id":39152,"date":"2018-10-15T06:55:46","date_gmt":"2018-10-15T11:55:46","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39152"},"modified":"2018-10-15T06:55:46","modified_gmt":"2018-10-15T11:55:46","slug":"the-oil-markets-are-at-a-confusing-crossroads","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39152","title":{"rendered":"The Oil Markets Are At A Confusing Crossroads"},"content":{"rendered":"

The Oil Markets Are At A Confusing Crossroads<\/a><\/h3>\n\"Market\"<\/picture>\n
\n

The oil market is \u201cadequately supplied for now,\u201d but the supply losses from Venezuela and Iran leave the market suffering from \u201cstrain,\u201d according to a new report from the International Energy Agency (IEA).<\/p>\n

The IEA noted that global oil production increased by 1.4 million barrels per day (mb\/d) on a net basis since May, which helped lead to an inventory build at an average rate of 0.5 mb\/d during the second quarter and likely the third quarter as well. As a result of a sizable stockpile of oil in storage, and these higher levels of production, the oil market is not in danger of shortages at the moment.<\/p>\n

However, that has come at the expense of spare capacity, which is already down to only 2 percent of global demand, \u201cwith further reductions likely to come,\u201d the IEA warned. \u201cThis strain could be with us for some time and it will likely be accompanied by higher prices, however much we regret them and their potential negative impact on the global economy.\u201d<\/p>\n

Iran has already lost around 800,000 bpd in exports, and the disruptions are set to continue over the next month at least with U.S. sanctions taking effect in November. Also, the \u201cever-present threat of supply disruptions\u201d from Libya, combined with the ongoing losses in Venezuela, leave the oil market vulnerable.<\/p>\n

Taking a step back, the IEA paused to note the historic nature of today\u2019s oil market. Both supply and demand are closing in on the 100-million-barrel-per-day mark for the first time. The agency used the opportunity to take a swipe at those who warned about peak oil supply. \u201cFifteen years ago, forecasts of peak supply were all the rage, with production from non-OPEC countries supposed to have started declining by now,\u201d the IEA said.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Oil Markets Are At A Confusing Crossroads The oil market is \u201cadequately supplied for now,\u201d but the supply losses from Venezuela and Iran leave the market suffering from \u201cstrain,\u201d according to a new report from the International Energy Agency (IEA). The IEA noted that global oil production increased by 1.4 million barrels per day […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[416,433,6010,2245,5332],"class_list":["post-39152","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-iea","tag-international-energy-agency","tag-nick-cunningham","tag-oil-market","tag-oilprice-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39152"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39152\/revisions"}],"predecessor-version":[{"id":39153,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39152\/revisions\/39153"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}