LONDON, (Pakistan Point News - APP - 11th August, 2016) - Oil prices steadied Thursday after falling most of the week, as markets reacted to the International Energy Agency's mixed outlook for crude. Around 1145 GMT, Brent North Sea crude for delivery in October was down a cent at $44.04 a barrel. US benchmark West Texas Intermediate for September delivery edged up a cent to $41.72, compared with the close on Wednesday. The IEA said Thursday it had cut its 2017 forecast for the growth in oil demand because of a weaker outlook for the world economy following Britain's vote to leave the European Union (EU).
On the other hand, oil oversupply, which has again been weighing on crude prices since June, will disappear in the latter part of 2016, the IEA said. "Although the latest... estimates from the IEA point to stock draws in the second half of this year, it has become increasingly bearish on the outlook for next year," oil brokers PVM said in a note to clients in reference to the downgrade for demand growth. The IEA also predicted an end to the supply glut -- even as official data on Wednesday showed another jump in US crude inventories.
And a report from the Organization of Petroleum Exporting Countries (OPEC) this week showed Saudi Arabia's July oil production at a record high of nearly 10.5 million barrels per day. Oil prices entered a "bear" market last week, having fallen more than 20 percent from peak levels above $50 a barrel seen in early June. They rebounded Monday however after news broke that OPEC will be meeting informally next month on the sidelines of an energy conference -- ahead of scheduled November talks -- boosting expectations that the cartel could intervene to limit production. But markets are sceptical after two similar previous meetings earlier this year failed to agree on any production ceiling.