To: Goose94 who wrote (22313 ) 9/13/2016 2:47:44 PM From: Goose94 Read Replies (1) | Respond to Crude oil: September Oil Market Report. The Paris-based energy agency said that global oil demand is growing a much slower pace than it previously expected, lowering its forecast for 2016 to just 1.3 million barrels per day, or about 100,000 barrels per day lower than last month’s estimate. The IEA said that the oil market’s “balance” will be delayed, citing discouraging trends – demand is actually slowing while supply has begun to rise. As a result, oil “stocks of oil in OECD countries are swelling to levels never seen before,” the IEA said. China and India are “wobbling” and the momentum in the U.S. is also slowing. The result is that supply will continue to exceed demand through at least half of next year. Bad news for oil prices. $45 to $55 is the “new range.” says that $45 to $55 is the “new range” that oil will trade between. High inventories and record production from OPEC has put a ceiling on oil prices at that upper bound, preventing any rally beyond that point. Oil megaproject could startup in October. One of the world’s most expensive oil projects, the Kashagan oil field, could finally come online (again) in October. The project has taken 16 years, cost more than $50 billion, and has had several false startups. It was supposed to begin operations a decade ago, but has suffered from delays, massive cost overruns, and technical problems. Nevertheless, the Caspian Sea oil field is massive, and could add 370,000 barrels per day of supply to global markets within a year. It is being jointly developed by Royal Dutch Shell (RDS.A-NY), Total (TOT-NY), ExxonMobil (XOM-NY), Eni (E-NY) and the Kazakh government, with Eni in the lead. Wood Mackenzie is not as confident in those production figures, however; the consultancy only sees Kashagan bringing 154,000 barrels per day online next year and then only exceeding 300,000 barrels per day sometime in the 2020s.
