World Economy Poised for Faster Growth Says Oil Report
The prediction comes from NYC-based PIRA Energy Group in its latest 'Oil Market Recap', as follows:
The world economy is set for faster growth now that it has achieved escape velocity. Current low oil inventories and stock declines are supporting strong prices.
Key light product inventories are low, with distillate vulnerable to a spike with very cold weather. Brent-Dubai will be fairly wide in January and February before narrowing sharply in April. Political risks were muted in December, but are still very much present. The 'Recap' adds:
Another Large U.S. [Oil] Stock Decline
Inventories fell this past week, slightly surpassing the week earlier decline, and bringing the total decline to over 70 million barrels over the last nine weeks, the largest decline for this period since 1999. Inventories are now 3.6% below year ago levels, with stock deficits in all of the major categories. PIRA's demand adjusted to normalize year-on-year weather and to reflect actual versus DOE-assumed exports, is running 8.1% above year ago levels.
Source: PIRA Energy Group: http://www.pira.com/