Crude oil prices took a hit after the Energy Information Administration (EIA) reported gasoline and oil demand seems to be standing still. Do those numbers matter when it is clear that Hurricane Delta heavily impacted the data?
Oil is starting to struggle. We still have no deal on a stimulus package, but the main reason that oil is struggling is because the API defied the whispers and dared report a 584,000 barrel crude oil supply build.
Last year, U.S. consumption of renewable energy reached a record 11.5 quadrillion British thermal units (Btu), or 11 percent of total U.S. energy consumption, the EIA has estimated.
OPEC+ says it will do what is necessary to balance the global oil market but stopped short of making any firm commitments to extending production cuts.
U.S. output was down significantly because of Hurricane Delta and should rebound this week. Yet will it recover to pre-hurricane levels of over 11 million bpd?
It’s the oldest story in the commodity world, supply versus demand. Global oil supplies have tighten at an incredible pace. Yet fears that the demand recovery will falter, flipping us back to an oversupplied market, are keeping prices anchored.
With compliance at 103% and the global crude glut evaporating, OPEC still has to worry about a faltering economy.
The IEA'a "The World Energy Outlook 2020,” its annual flagship publication, focuses on the pivotal period of the next 10 years, exploring different pathways out of the crisis. This is a long-term outlook, and we know that these predictions are sometimes wildly wrong in oil.
Oil refinieries and export ports were shut down due to Hurricane Delta, and the clean up effort is already showing signs of progress.
Oil prices are also getting support because Saudi Arabia and Russia may be having second thoughts about raising oil output again next year. OPEC says they expect demand in most developed countries to fall by about 27% over next 25 years.