Price Rout Extended As Demand Falls Further Behind Supply

The IEA and OPEC have both slashed their forecasts for the ‘call on OPEC’ crude for both this year and next. Both cut their 2015 forecasts by around 300,000 b/d to 28.9mn b/d, some 1.5mn b/d below current OPEC output. With Saudi Arabia holding output steady at 9.6mn b/d and Iraq and Iran planning output gains during 2015, something has to give. At the moment that something is prices.

The front month January Brent...