In its latest monthly oil market report published on Wednesday, the International Energy Agency (IEA) slashed the demand forecasts for the OPEC crude oil for 2019.
Rising stocks should be welcomed as a form of insurance, rather than a threat.
Inventories in developed nations have increased for four straight months.
Set to jump to 2 mil bpd in the next half-year if current output is maintained.
Record output from Saudi, Russia, US more than offsets declines from Iran, Venezuela.
Leaves global oil demand growth forecast unchanged for 2018 and 2019 at 1.3 mln bpd and 1.4 mln bpd, respectively.
Raises non-OPEC oil output growth forecast to 2.4 mln bpd in 2018 and 1.9 mln bpd 2019, from the previous estimate of 2.2 mln bpd and 1.8 mln bpd, respectively.
Total US oil supply growing by 2.1 mln bpd this year and 1.3 mln bpd during 2019.
OPEC crude output rose 200,000 bpd in October to 32.99 mln bpd, up 240,000 bpd on a year ago.
Cuts forecast for demand for OPEC crude oil by 300,000 bpd to 31.3 mln bpd in 2019, 1.7 mln bpd below current output.
OECD commercial oil stocks rose by 12.1 mln barrels in September to 2.875 bln barrels.
OECD oil inventories rose 58.1 mln barrels, or 630,000 bpd, in q3, biggest rise since 2015.
Sees global implied oil stock build of 2 mln bpd in h1 2019, based on non-OPEC output, global demand.
Shipments of Iranian oil in October were 1.8 mln bpd, down 900,000 bpd vs. May, still unclear how far exports will fall.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD drops below 1.0850 as DXY extends gains
EUR/USD pulled back below 1.0850 during the American session and turned negative for the day, moving away from the three-day high it hit earlier at 1.0871. The US Dollar gained momentum in a relatively quiet session.
GBP/USD retreats further from seven-week highs toward 1.2300
GBP/USD dropped to 1.2300 after the beginning of the American session amid a stronger US Dollar. Earlier on Wednesday reached the highest level since February 2 at 1.2360. The pair holds an upward bias but bulls need above 1.2300.
Gold: XAU/USD fails to retake $1,970 Premium
Gold reversed at $1,971/oz and retreated finding support above $1,960. Higher US yields make it difficult for XAU/USD to gather strength. Also, the DXY is trading at daily highs near 102.80, adding weight to gold.
XRP Price Prediction: Whales could be expecting a 20% rally
XRP price has been rising impressively, drawing investors towards the crypto asset. However, these traders might want to brace for a potential pullback following the recent rallies despite the Ripple community preparing for a win against the SEC.
Athleisure does it again as earnings blowout send LULU up 17%
Lululemon Athletica (LULU), the only heir to Nike's (NKE) success in the athletic wear realm, reported earnings late Tuesday that show why it has remained a must-own stock despite the market tanking over the past year.