The IEA sees non-OPEC+ set to lead supply growth through 2023, adding 1.9 million in 2022 and 1.8 million bpd in 2023. It said slowing demand growth and an increase in supply through the year end should help world oil markets rebalance. The IEA forecast world oil demand will reach 101.6 million bpd in 2023, surpassing pre-pandemic levels.
While advanced economies making up the OECD will account for most demand growth this year, China is due to lead the gains in 2023 as it emerges from lockdowns aimed at containing the spread of COVID-19. Meanwhile, resistance is seen at its high of $119.61 followed by $123.68 and $123.75, basis a trendline.įundamental News: The International Energy Agency said higher oil prices and lower economic forecasts are set to weigh on demand growth, though the world's demand for oil is set to reach pre-pandemic levels in 2023. T echnical Analysis: Support is seen at its low of $114.60, $114.41, its 50% retracement level and $112.22, its 62% retracement level. Meanwhile, the product markets ended mixed with the heating oil market settling up 15.3 cents at $4.5470 and the RBOB market settling down 9.96 cents at $3.8942. The July WTI contract settled down $3.62 at $115.31, while the August Brent contract settled down $2.66 at $118.51.
However, the market just as quickly erased all of its gains and retraced 50% of its move from a low of $105.13 to a high of $123.68 as it posted a low of $114.60 ahead of the close. The market sold off even further, falling to $116.15 before the market rallied back to $118.41 following the Fed announcement of an expected increase in interest rates of 75 basis point, the highest increase since 1994. The market breached its previous low and traded to $116.60 following the release of the EIA crude stock report. The crude market posted a high of $119.61 in overnight trading before it continued to sell off from Tuesday’s highs. crude oil production, which has been mostly stagnant over the last few months, increased by 100,000 bpd in the week ending June 10th to 12 million bpd, the highest level since April 2020. oil production reached pre-pandemic levels. If you have any ideas, please leave them in the comment section.Recap: The oil market continued to drift lower on Wednesday morning on concerns over fuel demand and global economic growth ahead of a large increase in interest rates by the Federal Reserve later in the day and as U.S. The Flourish website is pretty user-friendly and I’ll try to produce more “bar chart race” visualizations in the future. Also notice the significant declines in conventional oil production in Alaska (from more than 2 million barrels per day in 1988 to below 500,000 bpd by 2014) and California (from more than 1 million bpd in the early 1980s to below 500,000 bpd in 2017). 2 oil-producing US state by 2015 behind only Texas (and offshore production). 10 until about 2005, when revolutionary drilling and extraction technologies tapped into previously inaccessible shale oil deposits in the Bakken Formation in western North Dakota, and the state then rose to the No. Perhaps the most interesting trend is to watch the rise of oil production in North Dakota. A big thanks to my former AEI colleague Olivier Ballou for helping me find the UK-based website Flourish, which allowed me create the “bar chart race” visualization above showing annual oil production (barrels per day) in the top ten oil-producing states (including federal offshore production) from 1981 to 2018.