World News
OPEC Cuts Fail to Stop Oil Stocks Rising, but Markets are "Very Close" to Balance, Says IEA
Despite data earlier this week suggesting OPEC oil production cuts have actually been slightly more than originally pledged, the latest data from the International Energy Agency (IEA) indicates global oil stocks were likely to have "marginally increased" in 1Q 2017.
In its latest monthly report released Thursday, IEA attributed the gains to surging output just before the oil cut deal came into play.
As such, the agency expects second quarter stockpiles to fall, and that markets are arguably "very close to balance."
Specifically, stockpiles should fall by about 1.2 million barrels a day (bpd) in Q2, and 1.6 million bpd if the oil deal is extended until the end of 2017.
"We're seeing demand growing fairly steadily in the oil market and we think that the balance is coming together slowly but surely and the numbers are there to support it," IEA's Neil Atkinson told CNBC on Thursday.
"We think that as the year progresses that rebalancing will become more and more apparent in the drawdown of actual physical stocks."
The news brought little change to the market Thursday, with US crude up seven cents to settle at $53.18/bbl.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 644.50 | 2.50 | 765.00 | 14.00 |
| Rotterdam | 607.50 | 0.50 | 764.50 | 24.50 |
| Houston | 632.50 | 4.00 | 807.50 | 5.00 |
| Fujairah | 650.50 | 1.00 | 882.50 | 6.00 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
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