International organizations say the crude oil market is gradually balancing

The report released this week by the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) shows that the oversupply situation in the international crude oil market is gradually improving and the market is moving in a more balanced direction.

The report released on the 13th of the International Energy Agency showed that global crude oil supply fell in August, the global crude oil market is back to balance, industrialized countries, crude oil product inventories will soon decline to 5-year average below. In the industrialized countries of the Organization for Economic Co-operation and Development (OECD), crude oil inventories in July were 1,793 million barrels per day, only 35 million barrels higher than the average for the past five years. Depending on the US oil refining industry after the Harvey hurricane production recovery, OECD members of crude oil product inventories may soon fall below the five-year average.

The International Energy Agency says the oversupply situation in the crude oil market is improving under the influence of rising demand for crude oil, US hurricanes affecting crude oil production, and conventional summer maintenance periods. The International Energy Agency said that according to the recent trend of investors can be seen, investors expect the market is gradually tightening, crude oil prices will gradually rise, although the rate of recovery is still moderate. The International Energy Agency believes that the recent trend of the international crude oil futures market also shows that the crude oil market is beginning to return to balance. In the case of

OPEC 12 monthly report also shows that OPEC production in August fell, showing OPEC and non-OPEC oil-producing countries to achieve the effect of the implementation of the agreement is being enhanced. OPEC said in the report, OPEC oil production in August fell, indicating that the international crude oil market is further closer to the balance. OPEC Secretary-General Sauni Bourgeto said in a speech at Oxford, UK that the rebalancing process in the crude oil market is advancing with the support of OPEC and non-OPEC countries with high compliance agreements. In the case of

Last year, oil producers, including OPEC and Russia, reached an agreement to cut production to help improve the global oversupply situation in the crude oil market to help oil prices rebound. However, due to the poor implementation of the implementation of the agreement, many oil-producing countries is still growing production, fuel production rebounded the effect of oil is not obvious, the international oil prices did not rise to above $ 50 a barrel. Recently, OPEC held a special meeting to discuss how to promote the implementation of the cut agreement.

The International Energy Agency (IEA) said in its report that OPEC’s output was the first drop in five months in August, partly because of the turmoil in Libya that affected crude oil production and the rate of implementation of its oil-cut agreement by 75 percent in July 82%, non-OPEC member countries in August compared with July also cut production by 27 million barrels per day. In the case of

The International Energy Agency also raised the forecast for global crude oil demand growth, due to the second quarter of this year, crude oil demand is strong growth year on year. As the US and European demand for crude oil increased significantly, the current global demand for crude oil increased by 160 million barrels per day, the average will reach 9770 million barrels in 2017.

Recently, the United States, “Harvey” and “Elmar” hurricane continued to affect the US refinery production, so that crude oil demand fell, affected by oil prices fell again, New York crude oil futures fell more than 5% a week. In particular, the “Harvey” hurricane landed in Texas, is the United States oil-producing state, the distribution of a large number of crude oil refinery and other infrastructure. The International Energy Agency’s report on the 13th that the end of August landing in the United States, “Harvey” hurricane on the impact of international demand for crude oil will be temporary, the impact of the hurricane on the crude oil market is gradually weakening.

At the same time, the US Energy Information Administration released on the 13th statistics show that last week the United States national commercial crude oil inventories rose 590 million barrels, or less than market expectations. Before the US Energy Information Administration has cut its expectations for US crude oil production.

International Energy Agency’s report released after the international crude oil futures on the 13th has been the third consecutive trading day up, showing that investors for the oversupply of the crude oil market concerns are eased. As of the close on the 13th, the New York Mercantile Exchange in October delivery of light crude oil futures closed at $ 49.30 a barrel, or 2.2%; November delivery of London Brent crude oil futures closed at $ 55.16 a barrel, Or 1.64%.