Oil: an overview of the market situation

The cost of oil futures has fallen markedly , dropping below $ 111, which was due to the revision of demand outlook from the International Energy Agency.

Note that the monthly report from the IEA showed that the outlook for growth in oil demand in 2013 increased by 100,000 barrels to 1 million barrels a day. In addition, it was reported that the IEA lowers forecast demand for OPEC oil in 2014 by 100,000 barrels per day , and increases the forecast demand for OPEC oil in 2013 by 100,000 barrels per day. We add that the IEA raised its forecast for growth in oil supply from non-OPEC countries in 2014 to 1.7 million barrels a day. Also, the IEA warns that not raising the U.S. debt limit could damage the global demand for oil

The report also stated that in September, oil production in the OPEC -645,000 barrels per day to less than 30 million barrels per day , approaching the 2- year low due to lower production in Libya and Iraq.

In the IEA added that the relatively short duration of the suspension of the U.S. government will have a negligible impact on the oil market . We also learned that the IEA maintains growth forecast for oil demand in 2014 at 1.1 million barrels per day

Meanwhile, we add that the course of trade continues to influence optimistic about overcoming the fiscal crisis . Yesterday's reports that Republicans have taken the first step , provoked a rally of risk assets . Republican leaders have offered a compromise by extending the negotiations on the debt ceiling for 6 weeks in exchange for a more ambitious budget debates . It is worth noting that this initiative is not intended to reduce or delay funding programs affordable health care .

President Obama has yet to take a decision on the matter , but in any case, the Republican Party will be defeated in the war of attrition. Obama reflects successful attack Republicans in the aspect of how the targets and political implications, and while this episode did not increase the credibility of Obama 's popularity has fallen markedly Republicans.

Now Obama is inclined to think , to agree to a six -week extension of the talks , which will allow the Senate , the Democrats controlled , to "strangle " the initiative of the Republicans to reduce spending .

The cost of the November futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to $ 101.39 a barrel on the New York Mercantile Exchange.

November futures price for North Sea Brent crude oil mixture fell $ 0.80 to $ 110.88 a barrel on the London exchange ICE Futures Europe.