– Oil prices stable on Wednesday after a minor and opposite changes at the end of the previous session.
The price of April futures for Brent crude on the London ICE Futures exchange to 8:10 GMT on Wednesday rose $0,06 (0,1%) to $62,78 per barrel. On Tuesday, the contract rose $0,13 (0,21%) – to $62,72 per barrel.
The futures price for WTI crude oil for March in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0.03 (0.1 percent) to $59,16 per barrel. At the end of the previous session, the contract fell by $0.1 (0,17%) to $59,19 per barrel.
Report of the International energy Agency (IEA), released on Tuesday, was perceived by the market as mixed. On the one hand, the IEA raised its forecast for growth in global oil demand, and warned about the possible growth of shale oil in the United States.
IEA raised the forecast of growth of oil demand in 2018 for 100 thousand barrels per day (b/d) – up to 1.4 million b/d. However, the rate of increase of demand will be lower than in 2017, when they amounted to 1.6 million b/d.
In addition, according to the IEA, oil production from non-OPEC this year will exceed growth in demand.
“New and revised data show a small improvement balance at the beginning of 2018, but the main message of last month, remains unchanged and very clear: in 2018, growing oil production in non-OPEC, led by the United States likely to grow faster than the demand”, – noted in the review of the IEA.
The Agency also noted that the strong growth of demand in 2017, a slight increase in oil production from non-OPEC and the efforts of the parties to the transaction OPEC+ to limit oil production led to a significant drop oil stocks in the OECD countries.
“The decline of oil reserves in developed countries, the IEA noted, is a positive factor for the market in the short term”, – quotes MarketWatch Sevens Report analyst Tyler Richey.
“However, the IEA has already become the third of the important organizations, together with the Management of information in the field of energy (EIA) of U.S. Department of energy and OPEC, stressing the fact that oil production in the U.S. is growing, – said the expert. – At the moment this is a dominant factor for oil prices”.