Authored by Nick Cunningham via OilPrice.com,
For the second month in a row, the IEA has poured cold water onto the oil market, publishing an analysis that suggests 2018 could hold some bearish surprises for crude.
The IEA’s December Oil Market Report dramatically revises up the expected growth of U.S. shale, which goes a long way to torpedoing the excitement around the OPEC extension.
True to its perpetually optimistic form, OPEC, which last month for the first time conceded the threat posed by rising US shale production...
... sharply raised its demand forecast for cartel oil in 2018, ahead of the OPEC meeting at the end of November.
Authored by Nick Cunningham via OilPrice.com,
“We will not let go of our current approach until we reach a balanced market,” Saudi oil minister Khalid al-Falih said Monday at a news conference in Riyadh.
As previewed earlier this morning, when the flurry of leaks began, today OPEC reached a deal with non-OPEC partners to extend the oil production cuts until end of 2018 (recall these were supposed to be "temporary" when originally unveiled one year ago) at their meeting in Vienna, as part of producers' strategy to reduce global inventory levels. Below is a summary, via Bloomberg, of the key items agreed on:
Both WTI and RBOB prices are tumbling this morning after OPEC member agree to limit oil output through the end of 2018. While this is bullishly longer-than-expected (6-9mo was expected), OPEC members now rely on Russia to agree to these terms, and it appears the market is questioning that. Furthermore, despite US shale output at record highs, Saudi officials are shrugging off any impact.