WTI Crude is tumbling this morning, breaking down below $56 following a monthly report Tuesday from the International Energy Agency that said 2017 price gains along with milder-than-normal winter weather are slowing demand growth. This drop is weighing on oil-producers with the Ruble and Real dropping most…
The IEA reduced its demand estimate for next year by 200,000 barrels a day to 98.9 million a day, according to projections in its report. Forecasts for demand growth next year also fell by 100,000 barrels a day to 1.3 million a day.
“The market balance in 2018 does not look as tight as some would like, and there is not in fact a new normal” that would buoy prices above $60, said the Paris-based agency.
“If you put two and two together, it shows that we are going to be a little bit oversupplied in 1Q,” Michael Loewen, a commodities strategist at Scotiabank in Toronto, said by telephone referring to the IEA report. “Traders in the market are focusing on that right now. We rallied too far, too quick.”
This oil move has pushed the Ruble down to 3-month lows…back over 60 Ruble per USD…
via http://ift.tt/2zC0Pc8 Tyler Durden