International Energy Agency Oil Supply Improvement
April 12, 2012 by Douglas A. McIntyre
The International Energy Agency reported good news about supplies. Global oil inventories were boosted by as much as 1.2 million barrels a day in the first quarter as production from members of the Organization of Petroleum Exporting Countries ran ahead of demand by more than a million barrels a day, and Saudi Arabia and China stockpiled oil, the IEA said in its monthly market report, MarketWatch writes.
The data should help press crude prices lower– a direction in which they have largely been moving in the last several weeks. WTI crude is currently just below $103 compared to nearly $110 six weeks ago. While there is not a direct correlation between oil and gas prices, there is a loose one. Regular gas prices, which were predicted to reach $4 on average in the US this summer, may never get there.
