12 November 2010 12:52 [Source: ICIS news]
LONDON (ICIS)--Oil markets turned stronger in October as a result of higher-than-expected demand, lower inventories in OECD countries and a weaker US dollar, the International Energy Agency (IEA) said in its monthly report on Friday.
Crude oil futures rose from the $75-78/bbl range seen in the third quarter of 2010 to a higher range of $82-83.50/bbl in October.
“By early November, benchmark crudes hovered near two-year highs, oscillating around $89/bbl,” said the IEA.
The IEA revised up its forecast for global oil demand growth in 2010 by 200,000 bbl/day to 2.3m bbl/day, or by 2.8% year on year, because of higher-than-expected third-quarter data in OECD (Organisation for Economic Cooperation and Development) countries and slightly stronger readings in non-OECD countries.
Overall, global oil demand was now expected to average 87.3m bbl/day in 2010, up by 400,000 bbl/day compared with the IEA’s last report.
For 2011, demand growth was left broadly unchanged at an increase of 1.2m bbl/day, or 1.4% year on year, with demand averaging 88.5m bbl/day.
The IEA also reported that third-quarter global refinery crude throughputs have been revised up by 350,000 bbl/day to 75.7m bbl/day, following stronger final US data for August and higher-than-expected runs in both OECD and non-OECD countries.
“Final OECD data for August and preliminary data for September both came in higher than expected, lifting OECD runs to 37.5m bbl/day for the quarter, some 1.1m bbl/day above a year earlier,” it said.
“In the non-OECD, higher Russian and Chinese runs in September were the main contributors to a 195,000 bbl/day quarterly adjustment. Non-OECD runs are now assessed at 38.2m bbl/day, adding a further 1.0m bbl/day to global growth,” it added.
In addition, October global oil supply rose by 830,000 bbl/day to 87.6m bbl/day, largely on higher non-OPEC output.
Year on year, global oil production was up by 1.54m bbl/day, with non-OPEC providing just over 50% of the increased volumes, the IEA said.
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