Oil market rests on fragile supply cushion: IEA
Estimated world oil product demand is flat at 84.8 million barrels per day this year and the market has a fragile cushion to absorb supply disruptions in Alaska and elsewhere, the IEA reported on Friday.
By PTI |
PARIS: Estimated world oil product demand is flat at 84.8 million barrels per day this year and the market has a fragile cushion to absorb supply disruptions in Alaska and elsewhere, the IEA reported on Friday.
"For the time being, the market can cope with current outages," the International Energy Agency said in its monthly review of the oil market.
"But in the light of the many possible threats to output, including the current hurricane season, there is little doubt that the upstream spare capacity cushion remains thin."
The impact of disruption to supplies from the BP field in Prudhoe Bay, Alaska, would probably be substantially less than the 400,000 barrels per day reported because of offsetting factors elsewhere.
The agency said that Chinese demand might grow faster than expected and it raised its forecast of oil product demand from China this year by 24,000 barrels per day to 7.1 million bpd, an increase of 6.5 per cent from the 2005 figure.
And it raised its estimate for 2007 by 21,000 bpd to 7.4 million bpd, an annual increase of 5.5 per cent.
World oil supplies had increased by 6,15,000 barrels per day in July to 85.5 million barrels.
"Revisions driven by an unscheduled shutdown of Alaska's 4,00,000 barrels per day Prudhoe Bay field trim non-OPEC supply by 220,000 barrels per day in 2006 and 30,000 bpd in 2007."
The report put non-OPEC output at 51.1 million bpd on average in 2006 and 53.0 million bpd in 2007.
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