Brent fell below $62 a barrel
– Prices for oil benchmark brands significantly accelerated the fall on Tuesday after the International energy Agency (IEA) lowered its forecast of oil demand in the world for 2017 and 2018.
The January futures for Brent oil at the London ICE Futures exchange to 18:42 Moscow fell by $1.21 (1.92 percent) to $61,94 dollars per barrel. Futures price for WTI crude oil for December in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $1,11 (1,96%) – to $of 55.65 per barrel.
On Tuesday, the IEA lowered its growth forecasts for oil demand in 2017-2018 100 thousand b/d to 1.5 million b/d and 1.3 million b/d, respectively. The Outlook revision downward is due to higher oil prices and relatively mild winter temperatures.
Also the experts of the IEA noted that do not expect the balance of supply and demand of oil in the world until the second half of 2018. According to forecasts of Agency, the world oil market will face “a serious challenge” in the first quarter of 2018, the oversupply could reach 600 thousand b/d. In the second quarter of 2018, it is expected that this surplus will decrease to 200 thousand b/d.
Meanwhile, UAE energy Minister Suhail al-mazroui joined colleagues advocating for the renewal of the OPEC agreement, which expires March 31. “Definitely there is a need to extend”, – he said Tuesday at an energy conference in Abu Dhabi.
In addition, market participants are waiting for data on stocks of fuel in the United States, which will be released at 18:30 GMT on Wednesday. It is expected that data will show drop in crude oil inventories last week by 3.2 million barrels.
On the eve of the US Department of energy released a forecast that oil production on seven major shale areas of the country in December will increase by 80 thousand b/d – up to 6,174 million b/d.