Oil prices steady
Mihir Kapadia – CEO and Founder of Sun Global Investments
Oil prices steadied on Thursday, holding on to most of their recent gains after forecasts for stronger oil demand by the International Energy Agency (IEA). The IEA report has raised its 2017 oil demand growth estimates to 1.6 million barrels per day (bpd) from 1.5 million bpd. The IEA said a global oil surplus was beginning to shrink due to stronger-than-expected European and US demand growth, as well as production declines in OPEC and non-OPEC countries. The supply side of the oil market also looks promising, with OPEC still firmly committed in the production cutback, with extension in place until the first quarter of 2018.
Benchmark Brent crude was down 10 cents at $55.06 a barrel by 0730 GMT, after rising 89 cents or 1.6 per cent on Wednesday. US light crude was unchanged at $49.30 after gaining 2.2 per cent in the previous session.
Gold and most commodity prices are lower. Gold is 0.1 per cent lower at 1,320.40/troy ounce.