Today, the IEA – International Energy Agency published its monthly report on the global oil market for June 2011: the report referred to the recent decision of the IEA to release 60 million barrels of crude oil from its strategic stocks in order to compensate for the decline in Libya’s oil production.
During June, Saudi Arabia did raise its oil production by nearly 0.5 m bbl/d, but since Libya’s oil output fell by nearly 1.5 m bbl/d, this increase isn’t likely to fully compensate the drop in the total oil production; if you also consider that the global oil demand is expected to rise in the following months, one can defend the recent decision of IEA to release 60 million barrels of crude oil.
The worldwide oil demand projections didn’t change much and were raised by 0.2 mb/d on average to 89.5 mb/d in 2011; this increase is mainly due to rises in oil demand in non-OECD countries, while it’s expected that OECD countries’ oil demand will slightly be lower than the previous oil demand projection.
The global oil supply inclined by 1.2 mbbl/d during June from May 2011, mainly due to the increase in Saudi Arabia’s oil supply.
In the report there are also estimated rises in OECD oil stocks by 23.9 million bbl. This puts the oil stocks by the end of June, near the five year average for the first time in recent months.
Current Nymex crude oil price, short term futures (August 2011 delivery) is traded up by 0.23%, as its at $97.65 per barrel as of 09:25*.
The current Dated Brent spot oil price inclines by $0.65/b and it is at $117.12 / barrel as of 09:37*.
Euros to US dollar exchange rate is currently traded up at 1.4063 a 0.6259% increase as of 09:32*.
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