High supplies seen capping oil price until early 2017

PARIS -- A glut of oil will keep prices from rebounding until next year, much later than previously forecast, experts at the International Energy Agency said Monday.

See Full Article

A year ago, the IEA, a Paris-based organization of 29 major oil importing nations, had forecast a "relatively swift" recovery. Instead, oil prices have continued to fall, reaching a level below $30 a barrel last seen in 2003, the IEA says in its latest report Monday.

IEA chief Fatih Birol blamed "extraordinary volatility" in oil markets that has made forecasting "more difficult than ever" for its changed outlook.

"Our analysis of the oil market fundamentals at the start of 2016 is clear that in the short term there is unlikely to be a significant increase in prices," Birol said in the report.

In its report, the agency says oil supplies have surged due to a three-year rise in stocks, a phenomenon last seen in the mid-1990s.

Oil prices have collapsed 70 per cent since mid-2014. That's sent gasoline prices plummeting, with the U.S. Energy Information Agency forcecasting an average price of $1.98 a gallon nationwide this year. The last time oil averaged less than $2 for a full year was 2004.

The price plunge has led producers to slash spending on exploration and production. Capital expenditure fell 24 per cent last year and is expected to drop another 17 per cent this year, the IEA said -- the first two-year decline since 1986.

On Monday, the price of U.S. oil was up $1.02 at $30.66 a barrel.



Advertisements

Latest Economic News

  • Bell Media names Randy Lennox as new president

    Economic CTV News
    MONTREAL - Bell Media has named Randy Lennox as its president following the departure of Mary Ann Turcke for a new opportunity with the NFL. Lennox, a former executive at Universal Music Canada, joined the media giant in August 2015 as president of entertainment production and broadcasting. Source
  • Are loyalty programs even worth it anymore?

    Economic CTV News
    MONTREAL -- The value of customer loyalty programs is under increased scrutiny by companies and users in the wake of Air Miles' recent reversal of an unpopular expiration policy. The operator of the shopper reward program, LoyaltyOne, angered many members last year with its proposal to void unused Air Miles after five years, only to abandon that plan weeks before it was to take effect. Source
  • Manulife admits fine by money-laundering watchdog Fintrac

    Economic CTV News
    TORONTO -- Manulife Financial Corp. confirmed Monday its banking unit was penalized last year after Canada's money-laundering watchdog concluded it failed to report a suspicious transaction and various money transfers. Last year, Fintrac fined the bank $1.15 million, but it withheld the bank's identity, saying it was exercising its discretion to do so. Source
  • B.C. increasing minimum wage to $11.35

    Economic CTV News
    VICTORIA - The minimum wage in British Columbia will rise by 50 cents to $11.35 an hour in mid-September. The ministry says there will be an identical increase of 50 cents to the minimum wage for liquor servers, bringing it to $10.10 per hour in September. Source
  • 5 billion mobile phone users projected for 2017: study

    Economic CTV News
    With populations in Asia on the rise, the number of mobile phones, which stood at 4.8 billion a year ago, should mushroom to 5.7 billion, or three quarters of the world's population, by 2020. The number of mobile phone users globally will surpass five billion by the middle of this year, according to a study released Monday by GSMA, the association of mobile operators. Source
  • Behold the KEYone: Last BlackBerry-designed phone with a physical keyboard

    Economic CTV News
    TORONTO - Fans of BlackBerry's classic physical keyboard will have reason to celebrate when the last product designed in part by the former smartphone leader becomes available in April. The Waterloo, Ont.-based firm played a role in developing the KEYone, named for the return of the QWERTY keyboard that other smartphone designers have mostly long retired. Source
  • Manulife revealed as bank FINTRAC fined $1.15M for anti-money laundering failures

    Economic CBC News
    The head of Canada's top financial crime watchdog is second-guessing his decision last year to withhold the name of a Canadian bank — which CBC Investigates has identified — fined $1.15 million for violating the federal anti-money laundering and terrorist financing act. Source
  • Manulife revealed as bank fined $1.15M for violating anti-money laundering reporting rules

    Economic CBC News
    The head of Canada's top financial crime watchdog is second-guessing his decision last year to withhold the name of a Canadian bank — which CBC Investigates has identified — fined $1.15 million for violating the federal anti-money laundering and terrorist financing act. Source
  • Billionaire Wilbur Ross heads toward confirmation as U.S. Commerce secretary

    Economic CTV News
    WASHINGTON -- Billionaire investor Wilbur Ross is headed toward confirmation as Commerce secretary in U.S. President Donald Trump's administration. The Senate is set to vote on Ross' nomination Monday evening. Ross easily cleared the Senate Commerce Committee and a procedural vote by the full Senate. Source
  • Warren Buffett's investment advice: 'stick with low-cost index funds'

    Economic CBC News
    Billionaire Warren Buffett, whose stock picks over several decades have enriched generations of Berkshire Hathaway Inc. shareholders, delivered a black eye to the investment industry on Saturday, urging ordinary investors to buy plain-vanilla index funds. "When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients," Buffett said in his annual letter to shareholders. Source