Industry at a glance
World oil supply in April grew to 85.5 million bpd, while 2007 global demand was revised down slightly to 85.7 million bopd.
World oil supply in April grew to 85.5 million bpd, while 2007 global demand was revised down slightly to 85.7 million bopd. IEA predicts demand will swell by 1.6 million bopd in the month of June, and the agency has criticized OPEC for failing to boost its production levels amidst this increase in demand and prices. Meanwhile, OPEC reduced the 2007 demand forecast for its oil by 120,000 bpd, to 30.28 million bpd. Regarding world
oil prices, Brent Blend maintains an unusual premium to West Texas
Intermediate. In April, WTI fell $3.60 below Brent. The last time
a discrepancy of this magnitude occurred was in May 2002, when WTI
fell about $2.30 below Brent. One cause is that several WTI refineries
have been down, creating an all-time high crude oil inventory in
Cushing, OK, the hub of WTI. Additionally, Canadian crude oil continues
to increase in the Midwest, competing with WTI and driving down its
price. |
