$70 Oil, but OPEC Should Keep Cool… Bloomberg

January 14, 2018 by Jim Colburn Leave a Comment

From Julian Lee, at Bloomberg:

”To be sure, stronger-than-expected demand growth helped producers to drain excess stockpiles in 2017, and OPEC is forecasting a similar increase in the world’s oil use this year. But that would be the fourth year with demand growth running above 1.5 percent — not unheard of, but there have only been two other such four-year stretches in the last 40 years. The IEA takes a slightly more cautious view, seeing global demand growth in 2018 at 1.3 percent. The difference seems small, but, together with more robust U.S. output, a lower pace of growth would be enough to wipe out the prospect of any 2018 stockdraw.” But read the whole thing here…

Here are some excellent charts in the article:

The EIA ramped up its estimate of US oil production in last week’s release of it’s Short Term Energy Outlook:

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