IEA, OPEC have boosted projections for global consumption
U.S. crude output rebounds as operations recover after storm
SEPTEMBER 14, 2017 – Oil traded near a five-week high after the International Energy Agency and OPEC boosted their forecasts for crude demand.
Oil in New York has fallen about 8 percent this year as the effort to drain a global glut by the Organization of Petroleum Exporting Countries and partners including Russia is stifled by increasing output from the U.S. to Libya. OPEC and its allies are discussing extending supply cuts past the end of March by more than three months, according to people familiar with the matter.
West Texas Intermediate for October delivery was unchanged on the New York Mercantile Exchange at 9:58 a.m. in London. Total volume traded was about 27 percent below the 100-day average. Prices rose $1.07 to $49.30 on Wednesday, the highest close since Aug. 9.
Brent for November settlement slid 7 cents to $55.09 a barrel on the London-based ICE Futures Europe exchange. On Wednesday, prices added 89 cents, or 1.6 percent, to settle at $55.16, the highest since April 17. The global benchmark crude traded at a premium of $5.37 to November WTI.
The IEA increased its estimate for demand growth in 2017 by 100,000 barrels a day to 1.6 million a day, or 1.7 percent, according to its monthly report. The re-balancing of oversupplied world markets is continuing, the agency said.