Related Articles
Forward article link
Share PDF with colleagues

Winter freeze and economic recovery lifts oil prices

An exceptionally cold winter in the US and a mild economic recovery in Europe fuelled stronger than expected demand across developed economies, lifting oil prices in February

WTI, the US benchmark, was trading at around $100 a barrel on 17 February, up from $95/b a month earlier. It was the highest level since mid-October 2013. Brent crude saw smaller gains. It was trading at around $109/b on 17 February, up from around $106.50/b a month earlier. In a note titled The Glut That Never Was, the International Energy Agency (IEA) warned that contrary to forecasts of a flood of new supplies, “markets have had to dig deeply into inventories to meet unexpectedly strong demand.” OECD commercial stocks fell by 137 million barrels (1.5m b/d), according to the IEA, the largest quarterly stockpile decline since 1999. OECD demand, led by the US, was surprisingly strong in la

Also in this section
Peak demand and oil's long-term trap
19 January 2018
Fixating on the timing of a peak in oil demand is misplaced. Rather, the peak's significance is in shifting the paradigm, from perceived scarcity to perceived abundance. And it poses a problem for low-cost producers
The end is nigh for oil
12 January 2018
Fossil fuel merchants including oil companies are living on borrowed time, argues a new book
US energy: what to watch in 2018
3 January 2018
Oil production, trade, renewables and technology top our list of major questions facing America's energy industry heading into the new year