The International Energy Agency December 2016 report shows the difference from the US$30 per barrel in January 2016 to today, and the changing oil market
In the IEA highlights, there has been a big emphasis on the OPEC talks and production cuts, and the global production cutbacks in order to bring the oil price up. As the report states, 'OPEC has agreed to cut output by 1.2mn bpd from January 2017 and secured a reduction of 558,000 bpd from non-OPEC.'
The reduction has been secured by OPEC talks in Vienna in November and December this year. The additional cuts were led by Russia and are expected to curb 2017 growth from non OPEC producers to 0.2mn bpd from the IEA's previous estimate of 0.5mn bdp.
Despite this, global oil supplies in November were at a record high, 98.2 mn bpd, as OPEC production cancelled out the drop in non-OPEC output. In addition, global oil demand has grown to 1.4mn bpd, 120,000 bpd above the IEAs original forecast, with strong US numbers and changes to China's demand being the key to oil demand growth.
The main story has been the addition of US$10 per barrel following the cut of production by OPEC and non-OPEC. This saw the loses that hit the oil markets in November to reversed in December.