Oil Market Faces Worsening Supply Glut
Brent crude futures fell toward $62.5 per barrel on Thursday, extending a 4% slump to hit a three-week low amid mounting concerns about oversupply.
The IEA warned that the oil market is increasingly unbalanced, with global inventories rising and an even larger surplus expected. The agency raised both demand and supply forecasts, now seeing demand up by 788,000 barrels per day this year and 770,000 next, but supply growing faster, by 3.1 million and 2.5 million barrels per day, respectively. This implies surpluses of 2.4 million barrels per day this year and 4 million next.
The IEA also softened its view on peak oil demand, projecting consumption growth through 2050. OPEC, meanwhile, maintained its demand forecast but said global supply exceeded demand by 500,000 barrels a day in Q3.
Additional pressure came from higher US output forecasts and API data showing another inventory build, reinforcing fears of a global oil glut despite geopolitical risks and sanctions on Russian producers.
Source : Tradingeconomics.com
