IEA reports that the Kurdish Regional Government that governs the production of oil in the northern part of Iraq trades less crude with its national government over controversies in payments.
The Paris-based agency tracks the oil needs of the global developed world and reports in Oil Market Report for July that the oil demand has increased in the first quarter at 1.8 mbpd. This figure is likely to continue to ease in 2015 and further into 2016 as the temporary support fades.
As compared to the earlier figures of 2014, the drop has slid down from $115 per barrel (around 40%) drop in June 2014 to less than $70 per barrel in December. This declined further to $47 in January 2015. The forecasts are for zero growth in non-OPEC oil supply for the next year after a rise of 1 million bpd in 2015.
The global Energy Agency also said on Friday that the short period of high profitability of the global oil refineries is predicted to come to an end as rapidly as it began.
However, WTI’s sprawl to above $50 on Tuesday initiated many questions as to whether the oil was on the turning point of another major selloff due to the rout experienced from last summer through March. The global crude prices slashed by more than 60%.
On the ICE Futures Europe, Brent is a global benchmark that increased 12 cents or 0.2% to $58.73 a barrel. The market is more allayed on the Chinese economy as well as the oil prices.
Saudi Arabia continues to keep its output and export supply high and fully functional to Asia in August. The rate is hard to maintain on states that have oil as their primary export and petrol companies, both expecting to record further losses when situation changes.
The oil production in the non-OPEC countries is taking a toll recently, especially in the United States where a rise in the production of light oil from shale has changed the oil industry over the last five years.
The ever-increasing measures to cut down on greenhouse gas emissions and increase the efficiency has boosted the demand to resume the downward trend from 2017 onwards, reports IEA.
Brent crude oil increased to $59.17 a barrel (56 cents) by 1100 GMT. Growth in global petroleum and other forms of liquids inventories is holding the crude markets from growing.