Oil Rises a Second Day as Equity Gains Offset Supply Concerns

After jumping 2.2 percent on Monday, futures added 1 percent in New York on Tuesday. European and Asian stocks rose as President Donald Trump faced resistance to plans for a series of import tariffs, while a diplomatic breakthrough with North Korea also boosted optimism. Still, the International Energy Agency’s warning that OPEC production cuts will unleash a supply surge from the U.S. and other producers maintained a note of caution in the market.

The production cuts that helped push prices above $60 a barrel are triggering a flood of supply from OPEC’s rivals including Brazil and Canada, which will cover all growth in global demand until 2020, the IEA said. The agency may also raise its forecast for U.S. output if oil stays above $60 a barrel, Birol said during the CERAWeek oil conference in Houston. Non-OPEC growth is so strong that the oil market will change for years, he said.

Still, there are spots of optimism too. While global demand growth will slow by 2023, it will still increase by an average 1.1 percent a year, and peak consumption is not yet in sight, the IEA said.
more at:  https://www.bloomberg.com/news/articles/2018-03-06/oil-halts-advance-as-iea-says-it-may-raise-u-s-output-forecast