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WTI-Brent widens: The EIA's inventory report pressures oil prices (Part 11 of 11) (Continued from Part 10) Supply and consumption
The EIA (U.S. Energy Information Administration) expects global liquids supply to average 93.76 million barrels per day, or MMbbls/d, in 2015. This is 0.82 MMbbls/d higher than its estimate of 92.94 MMbbls/d in 2014. Global consumption is expected to average 93 MMbbls/d in 2015—up from an average consumption of 92.1 MMbbls/d in 2014.
Non‐OPEC petroleum and other liquids supply
The EIA estimates that non-OPEC (Organization of the Petroleum Exporting Countries) production grew by 2.1 MMbbls/d in 2014. This growth was led by the US. In 2015, the EIA expects supply to grow much slower, by 0.8 MMbbls/d in both 2015 and 2016, because of lower oil prices. The slow growth is mainly due to slow production growth in the US.
OPEC petroleum and other liquids supply
According to EIA estimates, OPEC crude oil production averaged 30.1 MMbbls/d in 2014. In 2014, non-crude oil liquids averaged 6.4 MMbbls/d. The EIA expects OPEC crude production to decline by 0.1 MMbbls/d in 2015 and 0.4 MMbbls/d in 2016. Non-crude liquids production is expected to increase by less than 0.1 MMbbls/d in both 2015 and 2016.
Global oil production is outpacing consumption, especially in the first half of 2015.
Oversupply glut in the US is due to the shale boom. Recently, it was due to refinery outages and winter weather. Record crude inventory builds created a greater need for demand-based signals to boost prices higher.
All of the oil that’s being produced isn’t being met with a parallel increase in demand. This is depressing oil prices. This is bad news for oil producers like Chevron (CVX), Marathon Oil (MRO), Apache Corp. (APA), and Occidental Petroleum (OXY). All of these companies are part of the Energy Select Sector SPDR ETF (XLE). They account for ~20% of XLE.
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Marathon Oil Corporation
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CODE : MRO |
ISIN : US5658491064 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Marathon Oil is a oil exploration company based in United states of america. Marathon Oil is listed in United States of America. Its market capitalisation is US$ 23.4 billions as of today (€ 22.0 billions). Its stock quote reached its lowest recent point on August 13, 1982 at US$ 0.70, and its highest recent level on April 23, 2024 at US$ 27.54. Marathon Oil has 849 755 866 shares outstanding. |