GLOBAL 2016: Global oil demand should stay soft through 2016
It is said the best cure for low oil prices is low oil prices. But despite low oil prices, the global market remains flush with supply. Oil storage terminals are brimming near capacity and producers are resorting to storing crude on tankers and in train cars. The Saudis and Russians continue pumping near record levels while Iran seeks to add at least a million more barrels per day into the mix. Overall, the global market wants to produce about 100 million barrels a day, but global demand is closer to 93 million barrels a day. It will take time and much stronger economic growth to remove the overhang from the market and restore balance to supply and demand.