Oversupply in the oil market that caused the collapse of quotations, may be the result of statistical errors of the International energy Agency (IEA). This means that the price of oil will probably recover much faster than expected. About it writes The Wall Street Journal.
“According to the IEA estimates, in 2015 the market each day went by 1.9 million barrels extra of oil, for which there was demand”, — writes the edition. With 770 thousand barrels received into storage, 300 thousand — flowed through the pipelines and transported on tankers. Thus, approximately 800 thousand barrels were unaccounted for.
Most experts interviewed by the newspaper believe that these barrels originally. Clarification of this issue is key for the oil industry, because the IEA reports of excess supply have considerable influence on the formation of oil prices.
If assumptions of analysts are true, the oversupply in the market may be much smaller, and the prices are again restored.
The minimum mark, oil prices reached 20 January 2016, when a barrel of Brent was given on the ICE just over 27 dollars. Now may futures are traded at the level of 41.3 dollars per barrel.
February 16, Russia and several OPEC members (Saudi Arabia, Qatar, and Venezuela) agreed to freeze oil production in order to support the quotation, subsided for a year and a half by 70 percent. Also about the intention to join the agreement said Iraq and Kuwait, and on 20 February, is now Nigeria. Thus in the IEA believe that this agreement will not have a significant impact on the market.
