IEA says hopes of higher, stable oil prices could be dashed quickly

by Ben Pena November 15, 2017, 0:20
IEA says hopes of higher, stable oil prices could be dashed quickly

The less-than-bullish forecast for Canadian oil and gas, means the IEA has cut the country's investment spend in the country to US$1.08 trillion in 2040 (from US$1.68 trillion in its forecast last year) - part of a global cut in investment projections.

The report from the Paris-based agency will come as grim news for officials attending global climate talks in Bonn, Germany, as they grapple with ways to contain carbon emissions.

"The scenario would see demand grow from 95.4 million barrels per day, in 2016, to reach 111.1 million barrels per day by 2040, with the global economy growing by an average of 3.5 per cent per year during that time".

Over the next 25 years, the world's growing energy needs are met first by renewables and natural gas, as fast-declining costs turn solar power into the cheapest source of new electricity generation.

"The oil market should be able to find a longer-term equilibrium, with the oil price in a range of $50-70 a barrel", the agency said.

In Abu Dhabi on Monday, the UAE Minister of Energy and Industry Suhail bin Mohammed Faraj Faris Al Mazrouei, said that oil producers were expected to unanimously extend a production cut accord later this month, but its duration was still under discussion.

Broadcom Offers $103 Billion for Qualcomm in Chip Megadeal
Qualcomm apparently isn't happy with the offer, with Bloomberg saying that Qualcomm thinks the deal "undervalues the company". Reuters reported that Broadcom had not contacted Qualcomm about the offer prior to Tan's letter.

Compliance by the group with its joint 1.8-million-bpd output cut with 10 partners was 96 percent in October, the highest since the supply-reduction deal took effect in January.

First, the world's energy demand will rise the equivalent of China and India's current energy consumption over the next three decades - but Canada has limited direct conduits to connect those energy-hungry markets to its store of the world's third-largest oil reserves. But analysts expect the price to not rise much further in coming months as the U.S. ramps up production.

"Over the same period, United States gas companies ramped up their exports to Canada and Mexico, pushing net U.S. imports of pipeline gas down to around 25 bcm in 2016, compared with 80 bcm some ten years earlier", IEA economists said.

In fact, the monthly report published by IEA on Tuesday would back that theory up as it lowered its crude demand forecast for the whole of 2017 and 2018, by 50,000 bbl/day and 190,000 bbl/day respectively.

"Prices ... are starting to look like a pause or pullback is needed", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

"With the United States accounting for 80% of the increase in global oil supply to 2025 and maintaining near-term downward pressure on prices, the world's consumers are not yet ready to say goodbye to the era of oil", the IEA report stated.


TOP News

Kevin Spacey dropped from Ridley Scott film and replaced by Christopher Plummer
Walsh, Quentin Curtis and Chris Clark. " All the Money In The World " is the latest project to distance itself from Spacey. Imperative Entertainment financed the film, and Friedkin and Thomas produced along with Scott Free's Scott and Kevin J.

Patriots Claim Tight End Bennett Off Waivers
And because he's considering retiring after the season, he may not suit up for another game in the NFL. That's not for me to comment on. "I've answered the question for the last time, respectfully".

Two men stabbed at the Mall of America
Police say the suspect had attempted to steal the first victim's property, which was in a fitting room. Authorities said both stabbing victims suffered non-life-threatening injuries.

Super Eagles beat Messi-less Argentina 4-2 in Russian Federation
The Argentines, parading star players like Sergio Aguero , Javier Mascherano and Angel Di Maria, scored the first two goals of the game.

'I' on iPhone Keyboard Doesn't Work Right Now, Customers Complain
After that, you are required to type an upper-case "I" character for the phrase and a lower-case "i" character for the shortcut . Many users have reported to Apple support on Twitter , one user says, "After upgrading to iOS 11.1 my battery drains very fast".

Deepika Padukone and Ranveer Singh call it quits? Here's the latest
She said in her letter that Khilji, who was a barbarian, desired Padmavati and that is why he destroyed Chittor. The rumours were fuelled further by Ranveer's cryptic tweet that said "stung by a bee for the first time".

Valtteri Bottas dedicates pole to Mercedes F1 team after gunpoint hold-up
Meanwhile personnel from the FIA, the sport's governing body, were also caught up in a separate incident, but escaped unharmed. With Lewis Hamilton out of qualifying following his crash in Q1, Bottas led the Silver Arrows' challenge for pole in Brazil .

New faces give England cause for optimism in draw with Germany
So for me to get to that next level I needed to play regular football. "We'll liaise with Aidy on that and go from there". Demarai Gray and Dominic Calvert-Lewin had also been under consideration for experience.

Floor collapses at apartment party in Denton; only minor injuries reported
Police say those type of calls are low priority in nature and people have usually left the party by the time officers arrive. Officials also believe the collapse happened because there was too much jumping during the party.

Preliminary agreement reached on TPP: VN trade Minister
Australian trade minister Steven Ciobo said the meeting was "very good" but did not confirm that agreement had been reached. Parker said other countries in the room, including Australia, were surprised by Canada's non-appearance at the talks.