We have never seen a supply disruption and price response like this in the oil market, say some energy analysts. Political-risk premiums are now back on the oil-market agenda. WTI Crude is $60.32; Brent is $66.52 this morning.
OPEC and the International Energy Agency (IEA) both issued reports this week pointing to an oil surplus next year, despite a pact by OPEC and its allies, to limit supplies. The deal runs until March. WTI Crude is $55.19; Brent is $60.23 this morning.
OPEC faces a daunting task in balancing the market next year as supply from competitors grows. Demand for OPEC’s crude in the first half of 2020 is estimated to be1.4 million barrels a day below its August output as production surges from competitors. WTI Crude is $54.57; Brent is $59.63 this morning.
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