Oil is set to rise this week, 2017 demand is seen growing more than previously expected, and U.S. stockpiles are declining. Prices are still less than $1 higher than when OPEC pledged to curb output late last year.
While the International Energy Agency raised its forecast for demand growth to the strongest in twoyears, it said that market rebalancing has become less certain with output expanding from the Organization of Petroleum Exporting Countries, according to a report Thursday.
The group’s output climbed last month to the highest this year.
“Growing U.S. production as well as rising OPEC output are the major pitfalls for oil’s rally, keeping prices vulnerable,” said Will Yun, a commodities analyst at Hyundai Futures Corp.
The IEA increased its forecast for demand growth by about 100,000 barrels a day to 1.4 million a day.
Current available data indicate that over the first half of the year inventories in developed nations actually increased by 215,000 barrels a day.
Source: Bloomberg Pro Terminal
Junior Trader Stefan Panteleev
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