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Oil futures fell on updated forecasts from the International Energy Agency (IEA) and the US dollar rate growth.
The IEA reported that in the 3 rd quarter oil demand growth has slowed sharply - up to 800 thousand barrels per day vs the 3rd quarter of 2015 when demand growth was higher at 1.5 million barrels per day. In addition, the forecast for growth of world oil demand in 2016 was reduced by 100 thousand barrels to 1.3 million barrels per day. The IEA estimates that global oil demand growth rate in 2017 would be another 100 thousand barrels per day lower than in 201t and amount to 1.2 million barrels per day. The IEA added that demand growth in developed countries has practically stopped, while consumption in Asia, in countries such as China and India, has been growing much more slowly.
IEA comments followed unexpectedly pessimistic forecast of OPEC. Yesterday, OPEC reported that in 2016, production in the United States, Russia, Norway and several other countries will be approximately 190,000 barrels per day higher than expected. This factor may indicate that oil production outside OPEC was stable, despite low oil prices. As expected by the cartel in 2017 oil supply will exceed demand by about 760,000 barrels a day, which is more than three times higher than the previous forecast.
"It seems the situation is much worse in the eyes of the OPEC and the IEA, - said Commerzbank strategist Eugen Weinberg -. Given the recent forecasts, I would not be surprised if the fall in oil prices will continue for some time."
The cost of the October futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 44.92 dollars per barrel on the New York Mercantile Exchange.
October futures price for North Sea petroleum mix of mark Brent fell to 47.13 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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