OECD oil stocks set for ‘substantial’ 2017 draw, but may rise in 2018: IEA

2 Oct 2017   Oil Supply

Forecasts for U.S. shale oil growth and uncertainty around China’s crude imports may see oil stocks building again next year after OPEC and non-OPEC cuts contributed to “substantial” draws this year, the International Energy Agency (IEA) said. “Assuming OPEC production remains constant, we don’t really see a big draw in OECD (Organization for Economic Cooperation and Development) crude inventories over the next 6-9 months,” Olivier Lejeune, IEA oil storage market analyst, said on Friday. “Our balances imply a build for 2018,” Lejeune added, again assuming constant OPEC production. A key reason for slowing stock draws next year is an expected increase in non-OPEC production, lead by shale producers in the United States where the IEA expects production to rise by an “enormous” 1.1 million bpd (bpd), […]

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