Warmer weather, rising non-OPEC output threaten oil market balance

Crude Oil Inventories Decline, but Imbalance to Continue: IEA

"This is why, absent any geopolitical premium, we may not have seen a "new normal" for oil prices", the IEA said.

"Oil is already facing stiff competition from ever-cheaper and more environmentally friendly energy sources as traditional fossil fuel users switch to cleaner, low-carbon alternatives", IEA said in its World Energy Outlook 2018.

Under its "New Policies Scenario", based on existing legislation and announced policy intentions relative to emissions and climate change, the oil price should continue to rise towards $83 a barrel by the mid-2020s. If shale resources turn out to be double current estimates, and the use of electric vehicles erodes demand more than anticipated, prices could stay in a "lower-for-longer" range of $50 to $70 a barrel through to 2040.

The report says that global energy demand is expected to grow 30 percent by 2040 and that demand for oil is not expected to peak until 2040.

Solar power will surge globally in the coming decades, but oil demand will also continue to grow, according to a new report from the International Energy Agency.

The biggest threat to market balances, aside from a tempering in demand, is the growth in supply from non-OPEC nations. "There's big growth coming from shale oil, and as such there'll be a big difference between the US and other producers".

In Abu Dhabi on Monday, the UAE Minister of Energy and Industry Suhail bin Mohammed Faraj Faris Al Mazrouei, said that oil producers were expected to unanimously extend a production cut accord later this month, but its duration was still under discussion.

House committee: Puerto Rico ignored lawyers' advice on fix contract after hurricane
The Army Corps of Engineers reportedly avoided hiring Whitefish because it charged twice as much as it should have. Mammoth Energy has 250 linemen in Puerto Rico rebuilding the power lines at the rate of $4,000 each per day.

Oil markets were treading water early on Tuesday, continuing the cautious trading seen over the last week as bullish factors such as ongoing OPEC-led production cuts and Middle East tensions are countered by rising USA output.

The United States can look forward to many more years of an unprecedented oil and gas boom.

Growth in energy demand is half what it would have been without improvements to efficiency.

It expects the United States to account for 80% of the increase in global oil supply to 2025, driven by increases in shale.

A study by Bank of America Merrill Lynch forecasts that pure electric vehicles would achieve a global penetration of 12 per cent in 2025, 34 per cent by 2030 and 90 per cent by 2050.

Global oil demand growth is likely to have slowed to 1.3 million bpd in the third quarter of this year, in part because of the impact of hurricanes Harvey and Irma in August and September on USA consumption.

At the same time, the renewable energy sources will become more important.

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