|
"There is little evidence that the stronger U.S. economy is leading to a recovery in U.S. oil demand," said commodities analyst Caroline Bain of the Economist Intelligence Unit. If the geopolitical risk from Egypt and the Middle East were to fade, "there will be few pillars of support for the oil market in the second half of this year," she said. On a similar note, the Paris-based IEA said expectations that forecasts for 2014 should give those betting on rising oil prices "some cause for alarm." The IEA expects supply growth to result in an additional 1.3 million barrels of oil a day in 2014, while global demand is seen growing by just 1.2 million barrels a day next year. "Non-OPEC supply growth looks on track to hit a 20-year record next year," the IEA said Thursday in its latest monthly oil market report. "While demand growth is also forecast to pick up momentum ... this will still fall short of forecast non-OPEC supply growth." The IEA pointed to growing oil production in the United States and Canada as the key source of the extra supplies. "North American supplies are set to grow strongly, outpacing declines elsewhere," the IEA said. In other energy futures trading on Nymex: Wholesale gasoline rose 1 cent to settle at $3.02 a gallon. Natural gas fell 7 cents to settle at $3.61 per 1,000 cubic feet. Heating oil remained unchanged, settling at $3.00 a gallon.
Associated Press writer Pablo Gorondi contributed to this report from Budapest.
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.