12 Jun 2015
EIA report bearish for oil prices – KBC
FXStreet (Barcelona) - According to The KBC Bank Research Team, the slide in oil prices was as a result of the bearish EIA report which mentioned that the oil supply outpaced demand.
Key Quotes
“After surging by more than 3% on Tuesday, the oil price fell back below 65 USD/bbl today in early trading. Though worries about situation in Greece could have played a minor role, the latest IEA monthly Oil Market Report has probably contributed more to the price slide.”
“Although the EIA revised estimate for this year’s oil demand growth significantly to the upside (mainly due to the unexpectedly strong increase in demand in the first quarter), it added that supply growth outpaced that of demand. In other words, the overall tone of the report was in our view rather bearish as the EIA attributed the increase in oil prices in recent months to a great extent to temporary imbalances in demand and supply for oil products in some regions. This idea is also supported by high US refinery utilization rates in the first quarter as well as relatively high exports of crude products from the US both in April and March.”
Key Quotes
“After surging by more than 3% on Tuesday, the oil price fell back below 65 USD/bbl today in early trading. Though worries about situation in Greece could have played a minor role, the latest IEA monthly Oil Market Report has probably contributed more to the price slide.”
“Although the EIA revised estimate for this year’s oil demand growth significantly to the upside (mainly due to the unexpectedly strong increase in demand in the first quarter), it added that supply growth outpaced that of demand. In other words, the overall tone of the report was in our view rather bearish as the EIA attributed the increase in oil prices in recent months to a great extent to temporary imbalances in demand and supply for oil products in some regions. This idea is also supported by high US refinery utilization rates in the first quarter as well as relatively high exports of crude products from the US both in April and March.”