Key highlights from IEA’s November MOMR

International Energy Agency released its monthly oil market report, which remains quite bearish. The report suggests a tighter oil market. Here are the key highlights,

Global supplies:

• Global oil supply rose in November by 0.2 million barrels per year to 97.8 million barrels per barrel, the highest in a year. However, according to IEA, the production was down 1.1 million barrels per day compared to a year ago.
• IEA forecasts non-OPEC supply increase of 0.6 million barrels per day in 2017 and of 1.6 million barrels per day in 2018.

OPEC supplies:

• According to IEA’s calculations, oil supplies from OPEC declined for a fourth consecutive month to 32.36 million barrels per day, which is down 1.3 million barrels per day compared to a year ago. OPEC compliance reached the highest level of 115 percent in November, which pushed the overall average to 91 percent.

Global demand:

• IEA forecasts a demand growth of 1.5 million per barrels for 2017 and 1.3 million barrels per day in 2018. The baseline for oil demand has been raised by roughly 0.2 million barrels per day.

Global inventories:

• On the inventory side, IEA report shows that commercial stocks declined by 40.3 million barrels in October to 2,940 million barrels, which is the lowest level since July 2015. The level is now 111 million barrels above the five-year average. Chinese crude stocks likely fell in October for the first time in a year.