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.


Latest Economic News

  • NYC agency investigating more than a dozen Kushner buildings

    Economic CTV News
    New York City's buildings regulator launched investigations at more than a dozen Kushner Cos. properties Wednesday following an Associated Press report that the real estate developer routinely filed false paperwork claiming it had zero rent-regulated tenants in its buildings across the city. Source
  • Tesla shareholders approve Elon Musk pay package that could net him $50B US

    Economic CBC News
    Shareholders of electric car and solar panel maker Tesla Inc. have approved an ambitious pay package for iconic CEO Elon Musk that could net him more than $50 billion US if he meets lofty milestones over the next decade. Source
  • Manitoba Hydro board resigns prompting accusations from premier, talk of lawsuit

    Economic CTV News
    WINNIPEG -- The board of directors at Manitoba Hydro resigned en masse Wednesday, leading to counter-accusations from Premier Brian Pallister and the spectre of a lawsuit from the Manitoba Metis Federation. Nine of 10 board members at the provincial Crown corporation issued a written statement in which they cited an inability to work with Pallister and his Progressive Conservative government. Source
  • Mark Zuckerberg says Facebook made mistakes on Cambridge Analytica

    Economic CBC News
    Breaking more than four days of silence, Facebook CEO Mark Zuckerberg admitted mistakes and outlined steps to protect user data in light of a privacy scandal involving a Trump-connected data-mining firm. Zuckerberg said Wednesday that Facebook has a "responsibility" to protect its users' data and if it fails, "we don't deserve to serve you. Source
  • Facebook crisis-management lesson: What not to do

    Economic CTV News
    NEW YORK -- The crisis-management playbook is pretty simple: Get ahead of the story, update authorities and the public regularly, assume responsibility and take decisive action. Crisis-management experts say Facebook is 0-for-4. Facebook's two top executives, CEO Mark Zuckerberg and chief operating officer Sheryl Sandberg, have gone radio silent since news broke on Sunday that political consulting firm Cambridge Analytica may have used data improperly obtained from roughly 50 million Facebook…
  • U.S. moving to limit warning labels on junk food: report

    Economic CTV News
    U.S. Trade Representative Robert Lighthizer has all but confirmed a New York Times report that U.S. trade negotiators are using the NAFTA talks to try to limit efforts to place warning labels on junk food. Source
  • What's likely as Fed meeting ends and Powell takes questions

    Economic CTV News
    WASHINGTON -- U.S. Federal Reserve officials are meeting this week for the first time under their new chairman, Jerome Powell, whose news conference to follow is stirring high anticipation. The Fed is set to announce its first interest rate increase of the year, a testament to the continued strength of the economy and of the job market in particular. Source
  • Fed raises key interest rate by a quarter-point

    Economic CTV News
    WASHINGTON -- The Federal Reserve is raising its benchmark interest rate and signalling that it is sticking with a gradual approach to rate hikes under its new chairman, Jerome Powell. The Fed on Wednesday boosted its key short-term rate by a modest quarter-point to a still-low range of 1.5 per cent to 1.75 per cent and said it will keep shrinking its bond portfolio. Source
  • In search of higher margins, Canada Goose to make more of its own luxury coats

    Economic CBC News
    Luxury coat maker Canada Goose plans to bring more manufacturing in-house in a bid to boost margins and help it live up to lofty investor expectations as the most expensive stock among major luxury brands. The Toronto-based company aims to make a least half of its outerwear itself in a few years, up from about a third now, Chief Executive Officer Dani Reiss told Reuters in an interview at the company's Toronto headquarters. Source
  • Shareholder motions demand Imperial Oil transparency on water risk, lobbying

    Economic CTV News
    CALGARY - Shareholders of Imperial Oil Ltd. are being asked to support motions to force it to be more transparent about its water-related risks from pollution and climate change, as well as its lobbying activities and expenditures. Source