Posted by: youngragingbull | May 14, 2013

Oversupply pushing oil prices lower: IEA

An oversupply of oil from new sources throughout North America is keeping crude prices depressed, the International Energy Agency said in a report Tuesday.

The Paris-based IEA said Canadian oilsands oil and conventional crude from other sources across the U.S. are having a “transformative” effect on the price of oil across the globe.

The impact on oil prices of those new sources of crude will be as significant over the next five years as China’s booming demand was over the past 15, the IEA said.

“North America has set off a supply shock that is sending ripples throughout the world,” the group’s executive director Maria van der Hoeven said.

The IEA expects the flow of crude oil out of North America to grow by 3.9 million barrels per day between 2012 and 2018. That’s almost half as much as the total amount the agency expects global output to expand by, 8.4 million barrels per day.

In New York, the price of the dominant crude oil contract lost 45 cents to trade at $94.72 US on Tuesday.


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