The IEA, the U.S. Energy Information Administration, and OPEC still see global oil inventories building in the first half of 2020. If OPEC+ producers continue pumping, the EIA and OPEC have cut the size of the build, and have become more positive for the second half of 2020. WTI Crude is $55.54; Brent is $61.43 this morning.
Regardless of who controls the world’s oil, we know that new investments in finding and producing more are required. Oil is the world’s most vital fuel with no significant substitute, making new demand a constant reality. WTI Crude is $56.54; Brent is $61.94 this morning.
Crude has increased since early October as the US and China moved closer to resolving trade conflicts. The International Energy Agency predicts the market is likely to remain “calm” next year as soaring production outside OPEC and high inventories keep consumers comfortably supplied. WTI Crude is $57.62; Brent is $63.24 this morning.
The IEA kept its assessments for growth in global oil demand in 2019 and 2020 at 1 million bpd and 1.2 million bpd, respectively. If some or all tariffs were lifted in the coming months, “world economic growth and oil demand growth would both rise significantly,” though it may not be immediate. WTI Crude is $56.69; Brent is $61.99 this morning.
Futures added as much as 1.1% in New York after climbing 0.6% the previous day. The American Petroleum Institute reported that stockpiles fell by 541,000 barrels last week. WTI Crude is $57.75; Brent is $63.17 this morning.
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