CRUDE OIL Market surveys project that US oil stocks could rise by 1.75 MMbbls for the week ending September 11, 2015. The record stockpile from the US to the Middle East will also add to the glut.
Bloomberg surveys estimate that crude oil stocks could rise by 1.75 MMbbls for the week ending September 11, 2015. Distillates stocks are also expected to rise by 0.25 MMbbls for the same period.
In contrast, the gasoline stockpile is estimated to fall by 0.5 MMbbls for the week ending September 11, 2015. The consensus of rising crude oil stocks will add pressure to crude oil prices.The massive fall in gasoline prices will also put pressure on crude oil prices.
OPEC released it Monthly Oil Market Report on September 14, 2015. The report highlighted that crude oil demand growth could slow down in 2016—led by China and Brazil’s economic slowdown. The demand for OPEC crude oil could average around at 30.31 million barrels per day in 2016. OPEC also projects that non-OPEC nations’ crude oil supplies could rise by 160,000 bpd in 2016.
South African economic slowdown will curb the demand for crude oil in the long term in the oversupplied crude oil market.