The International Energy Agency nudged up its global oil demand forecast for the year 2013 and forecasts demand to grow by 1.2 million barrels per day (mbd) in 2014.
The IEA, in its monthly Oil Market Report released Thursday, upped its second quarter 2013 global oil growth demand by 645,000 bd and that of full year 2013 by 215,000 bd mainly due to unseasonably cold weather in the OECD.
Commenting on the supply, the agency said global supplies fell due to disruptions in Libya, Nigeria and Iraq. Global supplies fell by 0.3 mbd to 91.2 mbd in June month-on-month, as lower OPEC crude output more than offset an 80,000 bd gain in non-OPEC supply, the agency said..
OECD commercial total oil inventories built seasonally by a relatively weak 4.8 mb in May, to 2 683mb. Product stocks rose by 16.8 mb, leaving forward demand cover unchanged at 30.4 days. Preliminary data show that stocks built by a further 23.2 mb in June.
On the inventory front, the IEA said OECD commercial oil stocks built seasonally by a relatively weak 4.8 mb in May, to 2 683 mb. However, product stocks rose by 16.8 mb, leaving forward demand cover unchanged at 30.4 days. based on preliminary data stocks built by a further 23.2 mb in June, the agency noted.
Yesterday, the OPEC in its monthly oil market report said it sees little change in global oil demand growth in 2013, while noting that world oil demand is projected to grow at a higher rate of 1.0 mbd to average 90.7 mbd in 2014.
On the price movement, the agency noted that futures markets were buoyed by upheaval in Egypt and supply-side issues, with futures edging mildly higher in June but posting stronger gains in early July.
Meanwhile, Light Sweet Crude Oil (WTI) futures for August delivery are gaining $0.52 to $107.04 a barrel.
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