The cost of Brent crude oil collapsed by almost 4% in trading on November 12 due to the forecast of OPEC, which allowed the possibility of oversupply of raw materials on the market. On the other hand, the International Energy Agency said that demand for oil and gas may continue to grow until 2050 - contrary to past expectations.

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The cost of contracts for delivery of Mark Brent oil with execution in January declined by about 3.9% - the price fell to $62.58 per barrel, follows from the data of the Intercontinental Exchange. Futures for WTI oil Mark fell by 4.3% - to $58.4 per barrel.

Quotes were influenced by OPEC's statement that by 2026 the global oil supply will be equal to demand, or slightly exceed it. This represents a departure from the previous forecast of the organization, which suggested a shortage of supplies, notes Reuters.

"The prospect of a balanced market is what caused prices to fall," Phil Flynn, senior analyst at Price Futures Group, told the agency. - I think the market wants to believe in balance. And I think the market has taken OPEC seriously - more so than the IEA."

The International Energy Agency (IEA) on Wednesday released its annual World Energy Outlook, which said that demand for oil and gas could continue to grow until 2050. This was also a departure from the agency's previous position that global oil demand was expected to peak as early as this decade. Now the forecast is again based not on the climate promises of countries, but on actual policies, Reuters explained.

What's up with production in the U.S.

U.S. oil production this year is expected to set an even higher record than previously estimated, despite global oil supply outpacing fuel demand. This is according to the U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook report released on Wednesday.

The agency expects that in 2025 the average daily oil production in the country will amount to 13.59 million barrels, and in 2026 will slightly decrease to 13.58 million barrels per day. Previously, the agency predicted that U.S. oil production in the United States will decline slightly stronger - from 13.53 million barrels per day in 2025 to 13.51 million in 2026. The revision of the forecast was explained by the fact that in August production was higher than expected.

EIA estimates that global oil and liquids production will average 106 million bpd in 2025, up 100,000 bpd from the previous forecast. The forecast for global consumption has also been raised by a similar amount to 104.1 million bpd.

Some analysts predict an increase in demand for oil products in the United States. The end of the shutdown may increase consumer confidence and economic activity, which in turn will stimulate demand for oil, Reuters quoted IG Market analyst Tony Sycamore as saying.

This article was AI-translated and verified by a human editor

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