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.
Crude oil is better supplied and demand growth is going to slow. Is there a better time to buy crude? Crude oil looks to break its three-week long losing streak as the doom and gloom over the fundamentals continue to roll in.
The combination of slow growth in the global economy along with current fundamentals that are starting to show signs of supply outstripping demand have kept oil prices hovering near the lower end of the trading range for the last two weeks.