International Energy Agency out with their monthly report 13 July

  • output may be gushing but profits are not
  • compliance with OPEC cuts slips to 78% in June vs 95% in May
  • Non-OPEC compliance 82%
  • Algeria, Iraq, UAE and Venezeula pump more than allowed
  • 2017 global oil demand growth forecast revised up by 100k bpd to 1.4mln bpd
  • global oil stocks fell in May to 266mln barrels above 5 year average vs 300 mln in April
  • sees hefty stock draw later in 2017 provided there is strong compliance with OPEC cuts and even if Libya,Nigeria output recovers further
  • call on OPEC crude to rise steadily through 2017 and reach 33.6blb bpd in Q4

IEA highlighting the fragile conditions still prevailing and less confident on oil market rebalancing.

WTI $45.03 near session lows as is Brent at $47.45 on the bearish price news. USDCAD unfazed and trawling along around 1.2750

More from the IEA here

Output deal cuts on the slide