Moderating IEA View Limiting Tanker Outlook

In its recent Oil Market Report (OMR), the International Energy Agency (IEA) kept its forecast for 2012 global oil demand roughly unchanged, while lowering its estimates for 2013 global oil demand growth from those levels previously reported in its medium term outlooks. Given its expectations for growth in non-OPEC supply and OPEC natural gas Liquids (NGLs), the IEA forecast call on OPEC crude in 2013 remains unchanged from 2012. With OPEC maintaining aggressive output levels to promote massive global stock builds in 1h12, any return to normalised inventory management during 2012-13 would suggest a sharp drop in OPEC production in the Arabian Gulf (AG). Download here