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| Economy |
| Global demand to help oil prices despite US oversupply |
| 2015-03-25 |
| [ARABNEWS] Stronger-than-expected global oil demand should help support crude prices at around $55-$60 a barrel in the next two months despite some signs of a growing glut in the United States,˝ a senior Gulf OPEC delegate told Rooters on Tuesday. The comments appear to counter some market forecasts that the US oil glut may push prices to as low as $20-$30 and are a sign that the core Gulf OPEC members remain confident about their strategy of defending market share. "Global demand is definitely growing much stronger than expected. In December, January, and especially February ˝it was beyond what forecasts anticipated," the delegate said. Low oil prices may have encouraged demand to pick up particularly in the United States but also in Asia, the Gulf delegate added. Oil prices are expected to fluctuate around $55-$60 a barrel through April, when they may come under pressure because of seasonal refinery maintenance and rising stocks in the United States, the Gulf OPEC delegate said. Underlining brimming US supplies, crude stocks rose nearly three times as much as expected, as storage at the Cushing, Oklahoma oil hub reached a new record, a government report showed last week. |
| Posted by:Fred |