IEA Revised Down (Again) 2011 Global Oil Demand– December Report

Today, the IEA – International Energy Agency published its monthly report on the global crude oil market as of November 2011.

According to the report, during November, OPEC’s oil production increased  to 30.68 million bbl/d compared with October’s average oil production; this was mainly (nearly 80% of the gains) due to the increase in Saudi Arabia and Libya’s oil production.

The global oil supply also rose by 0.9 mbbl/d to 90 mb/d during November 2011, despite the decline in non-OPEC countries’ oil production.

The global oil demand projection was revised down again by 0.2 mb/d to an average of 89.0 mb/d in 2011, which is 0.7 million bbl/d higher than the average oil demand in 2010.

In the report, the OECD industry oil inventories are estimated to sharply drop by 36.3 million bbl to 2,630 million bbl in October. The oil stockpiles are currently well below the 5-year average for four consecutive months by 61.9 million bbl; this means that the oil market tightened in October and November in OECD countries, mainly in Europe; this was probably among the reasons for keeping the gap between Brent oil and WTI high in October and November and also kept crude oil prices high.

This news suggest the perhaps the oil market in the OECD countries was tight during October and November, but the global oil market loosens up.

In anticipation for tomorrow’s OPEC meeting, current crude oil prices are traded sharply up:    

Current Nymex crude oil price, short term futures (January 2012 delivery) is traded up by 1.94%, as its at $99.67 per barrel as of 15:48*.

Current Dated Brent spot oil price increases by $2.24/b to $108.96 / barrel as of 15:59*.

Euros to US dollar exchange rate is currently traded up at 1.3107 a 0.6068% decrease as of 15:57*.

(* GMT)

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