The Brent oil price was pulverised again Friday night to $44.51. Markets are pricing on the possibility of the world running out of storage space. The IEA was to blame in its OMR:
Global demand growth is forecast to slow to 1.2 million barrels per day (mb/d) in 2016 after surging to a five-year high of 1.8 mb/d in 2015, the IEA Oil Market Report (OMR) for November informed subscribers. Momentum will ease towards its long-term trend as recent props – sharply lower oil prices, colder-than-year-earlier winter weather and post-recessionary bounces in some countries – are likely to give way.
Global oil supplies breached 97 mb/d in October, as non-OPEC output recovered from lower levels the previous month. Despite the resilience of producers such as Russia, non-OPEC supply is forecast to contract by more than 0.6 mb/d next year. US light tight oil (LTO), the driver of non-OPEC growth, is expected to decline by 0.6 mb/d in 2016.
