16 Jan 2015
Oil price recovery to take some time – IEA
FXStreet (Mumbai) - The International Energy Agency (IEA) said today that oil prices may continue to fall further and a recovery would take some time despite the growth in the North American supply.
The IEA, in its monthly report said, "How low the market's floor will be is anybody's guess. But the sell-off is having an impact. A price recovery - barring any major disruption - may not be imminent, but signs are mounting that the tide will turn.”
The agency cut its 2015 non-OPEC supply growth forecast to 950,000 barrels per day (Bpd), from 1.9 million bpd in 2014. The agency also trimmed its growth forecasts for Canada and the United States by 95,000 bpd and 80,000 bpd respectively.
Meanwhile, IEA raised its 2015 forecast of the demand for OPEC crude by 300,000 bpd to 29.2 million bpd. Further elaborating on the demand side, the agency said, "With a few notable exceptions such as the United States, lower prices do not appear to be stimulating demand just yet."
The IEA, in its monthly report said, "How low the market's floor will be is anybody's guess. But the sell-off is having an impact. A price recovery - barring any major disruption - may not be imminent, but signs are mounting that the tide will turn.”
The agency cut its 2015 non-OPEC supply growth forecast to 950,000 barrels per day (Bpd), from 1.9 million bpd in 2014. The agency also trimmed its growth forecasts for Canada and the United States by 95,000 bpd and 80,000 bpd respectively.
Meanwhile, IEA raised its 2015 forecast of the demand for OPEC crude by 300,000 bpd to 29.2 million bpd. Further elaborating on the demand side, the agency said, "With a few notable exceptions such as the United States, lower prices do not appear to be stimulating demand just yet."