Warnings that crude supply could tighten by the International Energy agency gave bulls reasons for hope, yet OPEC is warning of potential threats to the oil market's balance and reported an increase in its own output in May.
Oil prices are steady as we await confirmation from the EIA of a massive build in supplies. The IEA also just released their monthly oil market assessment and also lowered global oil consumption slightly for 2013.
Following several years of stronger-than-expected North American supply growth, the shockwaves of rising U.S. shale gas and light tight oil and Canadian oil sands production are reaching virtually all recesses of the global oil market.
With geopolitics less of an issue or price driver than it was the last few weeks the main oil price drivers are likely to be any and all macroeconomic data on the global economy with oil fundamentals equally important.
The International Energy Agency lowered its world oil-demand forecast for this quarter for a second time, citing weakness in Europe’s economy and disruption to U.S. fuel delivery and travel by Hurricane Sandy.
U.S. oil output is poised to surpass Saudi Arabia’s in the next decade, making the world’s biggest fuel consumer almost self-reliant and putting it on track to become a net exporter, the International Energy Agency said.